debt

Breathing Space Debt Scheme UK: What It Is and How to Apply

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If debt is becoming unmanageable, the UK's Breathing Space scheme offers legal protection for up to 60 days — giving you time to seek proper debt advice without creditors chasing you. Launched in May 2021, the Debt Respite Scheme (Breathing Space) pauses interest, fees, and enforcement action on most debts while you work out a plan. It's not a debt solution in itself — but it creates the breathing room you need to engage with free advice services without the constant pressure of letters, calls, and charges mounting up.

What Is the Breathing Space Scheme?

The Breathing Space scheme is a legal protection for people in England and Wales who are struggling with debt. Once you enter the scheme, creditors must pause interest, fees, and most enforcement actions on qualifying debts for 60 days. This includes stopping collection activity, pausing interest and charges, and preventing creditors from starting new enforcement actions. There are two types: Standard Breathing Space (available to anyone in problem debt) and Mental Health Crisis Breathing Space (available to those receiving mental health crisis treatment, which lasts as long as the treatment period plus 30 days). The scheme doesn't write off debts — it simply creates a protected window to get advice and put a long-term plan in place.
  • •Standard Breathing Space: 60 days protection
  • •Mental Health Crisis Breathing Space: duration of treatment + 30 days
  • •Pauses interest, fees, and most enforcement actions
  • •Available in England and Wales only (Scotland has its own scheme)
  • •Must be applied for through a registered debt adviser — you can't apply directly

What Debts Are Covered?

Most personal debts are covered by Breathing Space, including credit cards, personal loans, overdrafts, utility arrears, council tax arrears, rent arrears, benefit overpayments, and HMRC debts. There are some exclusions — secured debts like mortgages aren't covered in the same way (though enforcement is paused), and certain student loans and court fines have limited coverage. Child maintenance arrears and some criminal debts are also excluded. Your debt adviser will confirm exactly which of your debts are eligible when they assess your application.
  • •Covered: credit cards, personal loans, overdrafts, utility arrears
  • •Covered: council tax arrears, rent arrears, benefit overpayments
  • •Covered: HMRC tax debts, payday loans
  • •Limited/excluded: mortgages, student loans, criminal fines, child maintenance

How to Apply for Breathing Space

You cannot apply for Breathing Space directly — it must be applied for by a registered debt adviser on your behalf. This means your first step is to contact a free debt advice service. The main ones in the UK are StepChange (0800 138 1111), Citizens Advice, National Debtline (0808 808 4000), and MoneyHelper. These services are free, confidential, and non-judgmental. Your adviser will assess your situation, help you understand whether Breathing Space is appropriate, and apply to the Insolvency Service on your behalf. Once registered, you and your creditors are officially notified.
  • •Step 1: Contact a free debt adviser (StepChange, Citizens Advice, National Debtline)
  • •Step 2: Adviser assesses your debts and eligibility
  • •Step 3: Adviser applies to the Insolvency Service on your behalf
  • •Step 4: Breathing Space begins — creditors are notified
  • •All free — you should never pay for Breathing Space advice

What Happens During Breathing Space?

During your 60-day Breathing Space period, most creditors must stop all collection activity, including calls, letters, and legal action. Interest and charges on qualifying debts are frozen. This creates genuine headspace to work with your debt adviser on a longer-term solution — whether that's a Debt Management Plan, an Individual Voluntary Arrangement (IVA), bankruptcy, or simply a negotiated payment plan. You must continue to make certain essential payments during the period, and you should cooperate with your debt adviser's requirements. If you enter a Debt Relief Order or IVA during the period, the Breathing Space ends as these become the new formal solution.
  • •Creditors must pause calls, letters, and enforcement
  • •Interest and fees frozen on qualifying debts
  • •You continue paying essential bills (rent, council tax, utilities)
  • •Use the time to engage with your debt adviser on a long-term solution
  • •Scheme ends early if you no longer qualify or enter a formal insolvency

Frequently Asked Questions

Will Breathing Space affect my credit score?+

Breathing Space itself doesn't appear as a negative mark on your credit file in the same way a default or CCJ does — but the underlying debts causing you to need it already may. Focus on getting the right long-term solution.

Can I apply for Breathing Space more than once?+

Standard Breathing Space can only be used once every 12 months. Mental Health Crisis Breathing Space has no such limit.

Does Breathing Space stop bailiffs?+

It pauses most enforcement action including bailiff visits related to qualifying debts, but you should confirm this with your debt adviser.

Is it available in Scotland?+

Scotland has its own equivalent called a Debt Payment Programme (DAS) and Moratorium. Contact a Scottish debt advice service like Citizens Advice Scotland for guidance.

#breathing space#debt help#debt relief uk#creditor protection

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