UK Breathing Space Debt Relief Scheme Explained

The Debt Respite Scheme (Breathing Space) launched 4 May 2021 under the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. The scheme provides legal protection from creditor enforcement for a defined period during which interest, fees and enforcement action are paused on qualifying debts.

This guide covers the standard 60-day Breathing Space, the Mental Health Crisis variant, the eligibility criteria, the application route, and how borrowers can use the protection window to engage advice and agree a sustainable plan.

Standard Breathing Space: 60-day pause

The standard Breathing Space provides 60 days of legal protection from creditor enforcement on qualifying debts. During the 60 days creditors cannot add interest or fees, take court action, send enforcement letters, or instruct bailiffs. The borrower must engage with the debt adviser to agree a plan during the 60 days.

Access is through an FCA-authorised debt advice provider: StepChange Debt Charity, National Debtline, Citizens Advice, or other approved providers. The adviser carries out a single assessment of the borrower's situation; where the borrower has problem debt requiring time to address, the adviser registers the Breathing Space.

Registration is automatic on completion of the assessment. The Insolvency Service maintains a central register; creditors are notified through the system. From the date of registration, the protection runs for 60 days; the adviser sets the start date based on when engagement begins.

Worked example: a borrower with GBP 22,000 of debt across cards and loans is facing imminent CCJ hearings. They contact StepChange in May. The adviser registers a Breathing Space; the CCJ hearing is paused, all creditors stop enforcement. Over the 60 days the adviser assesses options and concludes an IVA is appropriate; the IVA proposal is in motion before the Breathing Space ends.

Mental Health Crisis Breathing Space

The Mental Health Crisis Breathing Space (MHCBS) provides extended protection during mental health crisis treatment. Access is through a mental health professional rather than a debt adviser. The protection runs for the duration of crisis treatment plus 30 days.

Mental health crisis treatment includes admission to a mental health facility (voluntary or under the Mental Health Act 1983), treatment in a community-based crisis intervention service, or being subject to a Community Treatment Order. The mental health professional (a psychiatrist, mental health nurse, or other approved clinician) confirms the crisis status to the Insolvency Service.

During the MHCBS the same protections apply as for standard Breathing Space: no interest, no fees, no enforcement. The duration extends with the crisis treatment; once treatment ends, the protection runs for a further 30 days before lifting.

Edge case: a borrower may move between MHCBS and standard Breathing Space if their situation changes. The 12-month restriction on standard Breathing Space does not apply to MHCBS - a borrower can access MHCBS during crisis even if they have used a standard Breathing Space in the past 12 months. The two schemes are complementary protections.

Qualifying and non-qualifying debts

Most consumer debts qualify: credit cards, personal loans, overdrafts, mortgages, rent arrears, utility bills, council tax arrears (for the standard Breathing Space, since the 2024 reforms), HMRC tax debts (excluding fraud or deliberate evasion), Universal Credit and benefit overpayments.

Non-qualifying debts include: child maintenance arrears (recovered through Child Maintenance Service), court fines (Magistrates' Court or Crown Court fines), Social Fund loans, advance payments on benefits, debts incurred through fraud or by criminal damages, secured loans where enforcement is already initiated by way of repossession.

Council tax arrears were added as a qualifying debt from 22 June 2022. Before that they were excluded. The expansion broadened the scheme's coverage significantly because council tax is one of the most common pressure debts for low-income households.

Worked example: a borrower owes GBP 12,000 across credit cards (qualifying), GBP 800 of council tax arrears (qualifying since 2022), GBP 500 of child maintenance arrears (non-qualifying), and a GBP 200 court fine (non-qualifying). Breathing Space protects the GBP 12,800 of qualifying debt; the CMS continues to pursue the maintenance and the court continues fine enforcement separately.

Using the 60 days productively

The 60-day window is intended for assessment and planning. The debt adviser typically uses the first 2-3 weeks to gather full information (income, expenses, all debts, assets, family circumstances). The middle weeks assess options against the borrower's situation. The final weeks formalise the chosen route - DMP setup, IVA proposal, DRO application, or bankruptcy petition.

Borrower engagement is essential. The Breathing Space can be cancelled if the borrower fails to engage with the adviser. Regular contact (phone calls, online sessions, document submission) keeps the protection in place and moves the plan forward.

Communications from creditors typically reduce during the Breathing Space. Some creditors continue to send letters or calls inappropriately; these should be reported to the adviser who can escalate through the FCA CONC framework. Creditors breaching the Breathing Space restrictions can face FCA enforcement action.

Practical action: keeping a list of all creditors and their contact addresses helps the adviser register the Breathing Space accurately. Where a creditor is not on the list, they continue to enforce; updating the register adds them. The completeness of the initial debt list determines the protection's coverage.

After the 60 days

At the end of the standard Breathing Space, the protection lifts and interest, fees and enforcement can resume. Where a sustainable plan has been agreed (DMP, IVA, DRO, bankruptcy), the plan continues to provide protection through its own framework. Where no plan has been agreed, the borrower returns to the pre-Breathing-Space position.

Only one standard Breathing Space is allowed per 12-month period. A borrower who used Breathing Space in June 2026 cannot access another standard one until June 2027. This restriction encourages full engagement with the first use rather than treating it as a renewable pause.

Where a plan agreed during Breathing Space requires more time to implement (an IVA proposal takes 4-8 weeks to conclude with creditors), the Insolvency Practitioner can negotiate temporary forbearance with creditors during the implementation period. This is informal but typically respected.

Worked example: a borrower used Breathing Space May-July 2026 to set up an IVA which started in August 2026. The IVA provides legal protection through its own 5-6 year term. Breathing Space could not be accessed again until May 2027 under the 12-month restriction; the borrower would not need it as the IVA already provides protection.

Limitations and what Breathing Space cannot do

Breathing Space is not a debt solution itself; it is a 60-day window to find a solution. At the end of the 60 days protection lifts unless the borrower has moved into a longer-term solution (DMP, IVA, DRO, Bankruptcy). A borrower who completes Breathing Space without an agreed plan returns to the pre-Breathing-Space position.

Some debts are not covered: child maintenance arrears (recovered through CMS), court fines (Magistrates' or Crown), Social Fund repayments, debts incurred through fraud or criminal damages. Enforcement on these continues during Breathing Space.

Mortgages held with the borrower's home are qualifying debts for the protection of interest and fees, but possession proceedings already initiated may continue under the discretion of the court. The Breathing Space adviser can apply to court for stay where appropriate.

Edge case: secured debts in arrears (logbook loans, second-charge mortgages) are partially covered. The interest pause applies; enforcement (repossession of collateral) can continue subject to FCA conduct rules. The interaction is complex; the Breathing Space adviser navigates each case individually.

Frequently asked questions

Who is eligible for Breathing Space?

Any UK resident with qualifying debts in problem-debt-level circumstances. Access is through an FCA-authorised debt adviser (StepChange, National Debtline, Citizens Advice) who carries out a single assessment to confirm eligibility. The adviser registers the Breathing Space through the Insolvency Service central register. Only one standard Breathing Space per 12 months.

How long does Breathing Space last?

Standard Breathing Space: 60 days from registration. Mental Health Crisis Breathing Space: duration of crisis treatment plus 30 days, accessed through a mental health professional. The standard 60 days is intended for assessment and planning, ending with either a sustainable debt solution agreed or the borrower returning to the pre-Breathing-Space position.

Does Breathing Space stop bailiffs?

Yes for qualifying debts. During Breathing Space, bailiffs cannot enforce a CCJ or debt warrant on a qualifying debt. Bailiffs already at the door at the moment of registration must withdraw. Non-qualifying debts (child maintenance, court fines) continue to be enforceable. The protection is statutory under the Debt Respite Scheme Regulations 2020; breaches can be challenged through the courts.

Can I get Breathing Space without going to a debt charity?

No for standard Breathing Space. Access is only through FCA-authorised debt advice providers. The advisor carries out the eligibility assessment and registers the Breathing Space. The route is deliberately tied to advice provision so that the 60-day window is used productively for planning rather than just as a pause.

Does Breathing Space affect my credit file?

Yes. Breathing Space is recorded on the credit file for the duration. It is not a default but lenders see the marker. Score impact is moderate - typically 50-100 points dropped on Experian's scale. The marker comes off the file at the end of the 60-day period; the underlying issue (mounting arrears, multiple late payments) is what affects long-term credit health more than the Breathing Space registration itself.