If you’re struggling with debt in the UK, the constant calls, letters, and pressure from creditors can feel overwhelming. But there is a government-backed scheme called Breathing Space that can give you a temporary pause and help you regain control of your finances. 

In this article, we’ll explain what Breathing Space is, how it works, who can apply, and how it can help you manage debt more effectively. Keep reading to learn how this scheme could provide the relief and support you need. 

What Is Breathing Space?

Breathing Space is a government-backed scheme in the UK designed to give people struggling with debt some temporary relief. Its main purpose is to give you time to get professional debt advice, create a plan to manage your finances, and stop creditors from taking further action while you get help.

Duration and Types of Breathing Space

The scheme has two main types, each with different durations. They are as follows:

1. Standard Breathing Space: This type lasts for up to 60 days. During this period, you are protected from most creditor actions, including phone calls, letters, and enforcement measures. Interest, fees, and charges on qualifying debts are also paused, giving you time to focus on resolving your debt situation.
2. Mental Health Crisis Breathing Space: This is for people receiving mental health crisis treatment. It lasts for the duration of your treatment plus 30 days. Like the standard scheme, it stops creditor actions and freezes charges on qualifying debts. This type provides extra protection for those whose mental health may make managing debt especially difficult.  

Need Help To Deal with Your Debt?

If you’re unsure which debt solution is right for you, fill out the online form below to get started. Once you submit the form, we’ll get back to you to help you find your options. 

We’re here to support you every step of the way. 

So, let’s get started…!  

How Breathing Space Helps

Breathing Space can make a real difference for anyone struggling with debt. It provides temporary relief and protection, allowing you to focus on planning your next steps without added pressure from creditors. 

Here’s how it can help:

1. Protection from Creditor Actions

Once you enter Breathing Space, most creditors must pause their actions. This means you are protected from:

• Legal action such as court claims or bailiff visits.
• Continuous calls, letters, or threats from creditors.

2. Freezing Interest, Fees, and Charges

During the period, interest, fees, and charges on qualifying debts are frozen. This prevents your debts from growing while you work on a repayment plan, giving you a clearer picture of your finances.

3. Time to Focus on Debt Solutions

Breathing Space gives you a window to speak with a professional debt advisor and decide on the best way to manage your debt. It reduces immediate stress and creates a structured time to plan for long-term solutions like repayment arrangements or formal debt solutions. 

Additional Benefits

• Peace of Mind: You can focus on sorting out your finances without constant stress from creditors. 
• Improved Planning: The pause allows you to better organize your budget and repayment strategy. 
• Support Access: It encourages seeking advice from trained debt advisors who can guide you through the best options for your situation.  

As you can see, by combining protection from creditor actions, freezing debt costs, and access to professional advice, Breathing Space provides a structured opportunity to regain control over your financial situation. It is not a permanent solution, but it creates the necessary space to plan the next steps without the immediate threat of escalating debt problems. 

Eligibility Criteria To Apply For Breathing Space

Not everyone in debt can enter Breathing Space, so it’s important to know the rules before applying. The scheme has specific eligibility criteria depending on the type of Breathing Space you are applying for.

Who Can Apply

You can apply if you are a:

• Resident of England and Wales: Only people living in these areas can access the scheme. 
• Individual with qualifying debts: You must owe one or more debts that are eligible under the Breathing Space rules. This includes most common unsecured debts like credit cards, personal loans, overdrafts, and payday loans. 
• Seeking professional debt advice: You must be receiving support from a debt adviser approved by the scheme. This adviser will help submit your application. 

Eligibility Requirements

You must meet the following conditions to apply:

• Not currently in certain debt solutions: You must not have a Debt Relief Order (DRO), an Individual Voluntary Arrangement (IVA), an interim order, or be an undischarged bankrupt at the time you apply. 
• Not already in Breathing Space: You cannot already be using the Breathing Space scheme. 
• Time limits for repeat use: You cannot have used the Breathing Space scheme in the last 12 months, unless it was for a mental health crisis. 

[Source: GOV.UK]

Mental Health Crisis Breathing Space Specifics

• Receiving mental health crisis treatment: To qualify, you must be under the care of a mental health professional for a crisis, which triggers this special type of Breathing Space. 
• Extra protection: While in a Mental Health Crisis Breathing Space, creditor actions are paused, and interest, fees, and charges are frozen. The period lasts for the duration of your treatment plus an additional 30 days.  
• Access to support services: You may also receive guidance and support from mental health professionals alongside debt advice during this period. 

Meeting these eligibility requirements is essential to benefit from the scheme. A qualified debt adviser can guide you through whether you qualify and help prepare the application correctly.

Debt Types That Can and Cannot Be Included for a Breathing Space

Not all debts are automatically covered by Breathing Space. It’s important to know which debts qualify and which are excluded to understand the protection the scheme offers.

Qualifying Debts

Debts or liabilities included in Breathing Space must be qualifying debts as defined by the regulations. These are debts you owe to a creditor or any obligation to pay money. Most common debts fall under this category, including:

• Credit cards and store cards 
• Personal loans and payday loans 
• Overdrafts 
• Utility bill arrears 
• Mortgage or rent arrears 
• Government debts such as tax and benefit arrears 

Other points about qualifying debts:

• Joint debts: If a debt is shared, entering Breathing Space for one person applies protections to the other people responsible for that debt, although interest or fees may still be charged to them. 
• Guarantor loans: The protections do not extend to the guarantor, but the guarantor may apply for their own Breathing Space if eligible. 
• Pre-existing debts: Debts incurred before the Breathing Space legislation (4 May 2021) are included. 
• New debts: Debts incurred after Breathing Space begins generally do not qualify, except in certain circumstances if the debt is identified shortly after the period starts. 

Excluded Debts

Certain debts cannot be included in Breathing Space:

• Secured debts: Such as mortgages, hire purchase, or conditional sale agreements. Only arrears existing at the start of Breathing Space are protected. New arrears on secured debts are not covered. 
• Debts from fraud: Any debt incurred through fraud or fraudulent breach of trust. Evidence may be required if this is disputed. 
• Fines and penalties: Debts from court-imposed fines, confiscation orders, or related penalties. (This does not include penalty charge notices like parking tickets.) 
• Family or personal obligations: Child maintenance or orders from family court proceedings. 
• Certain social loans or benefits: Crisis or budgeting loans from the social fund, advance Universal Credit payments. 
• Student loans: These are excluded from protection. 
• Damages for personal injury or death: Obligations to pay compensation. 
• Council tax: Only arrears that have already fallen due qualify; future instalments do not. 
• Some business debts: Business-only debts may not qualify if the debtor is VAT registered or a business partner, though some non-domestic rates debts can qualify under specific conditions.

As you can see, being aware of which debts are included helps you see what will be paused or protected during Breathing Space and ensures you can plan your debt management effectively.

[Source: GOV.UK]

How to Apply For a Standard Breathing Space

Applying for a Standard Breathing Space involves a few key steps. The scheme is designed to ensure that you get proper support from professional debt advisers while pausing creditor actions, so it’s important to follow the process carefully.

Talk to a Debt Advice Provider First

Before you can apply, you must speak to a debt advice provider approved under the Breathing Space scheme. This step is important because:

• They assess your financial situation to confirm that you are eligible. 
• They help identify which debts qualify for protection under Breathing Space. 
• They can guide you on the best approach to managing your debts after the period ends. 

Getting professional advice ensures you understand your options and prevents mistakes in the application process that could delay approval.

Steps to Initiate the Application Process

1. Contact an approved debt advice organisation: This could be a charity, non-profit, or professional debt advice service. 
2. Assessment of your debts: The adviser reviews your financial situation, including income, expenses, and outstanding debts. 
3. Submitting the application: The adviser applies for Breathing Space on your behalf using the official system. 
4. Confirmation from the scheme: Once approved, you and your creditors are notified, and the protections come into effect. 

Required Documentation and Information

To apply, you generally need to provide:

• Personal details (name, address, and contact information).
• Details of your debts, including creditors, outstanding amounts, and account numbers.
• Proof of income and essential expenses (such as rent, utilities, or childcare costs).
• Any additional information requested by the debt adviser to confirm eligibility.

Once your application is approved, you enter the Standard Breathing Space period, giving you up to 60 days of protection while you work with your adviser on a debt management plan. 

Do I Have To Pay To Apply?

No, you do not have to pay to apply for Breathing Space. The application process is free of charge.

Here’s what you need to know:

• Debt advice is usually free: Approved debt advice providers handle your application without charging for their help. 
• No hidden fees from the scheme: The Breathing Space scheme itself does not require any payment, so you can get protection from creditor actions without adding to your debt. 
• Some advisers may charge a fee: While most approved debt advisers offer free support, a small number may charge a fee for certain services. Always check upfront before proceeding. 
• Why free support matters: Free access ensures that everyone struggling with debt can seek professional guidance and enter Breathing Space without worrying about extra costs. 

Working with a legitimate, approved debt adviser ensures you get the protection and guidance you need safely and at minimal or no cost. 

[Source: GOV.UK]  

What Happens During Breathing Space

When you enter Breathing Space, several protections and rules come into effect to help you manage your debt without immediate pressure from creditors. Here’s what you can expect:

Protection from Creditors

• No enforcement actions: Creditors cannot take legal action, such as court proceedings or bailiff visits, while you are in Breathing Space. 
• No contact from creditors: Most communications, including phone calls and letters, are paused. 
• Freezing interest, fees, and charges: Any interest, fees, or additional charges on qualifying debts are paused for the duration of the Breathing Space period. 

Responsibilities During Breathing Space

• Stay in contact with your debt adviser: You should continue to work with your approved debt adviser to review your finances and develop a plan to manage your debts. 
• Provide necessary information: If your adviser requests updates on your financial situation, it’s important to respond promptly. 
• Follow guidance: Breathing Space is intended to give you time to plan, but you are expected to engage in finding a long-term solution rather than ignoring the debt entirely. 

Limitations

• Not all debts are covered: Certain debts, such as criminal fines, student loans, or council tax arrears, may not be fully protected. 
• Temporary protection: Breathing Space does not cancel or reduce your debts. Once the period ends, normal creditor actions may resume if no long-term solution is in place. 

By providing a structured pause from creditor pressure, Breathing Space gives you time to focus on getting professional advice, budgeting, and planning how to manage your debts effectively.

Can Creditors Ask My Debt Advisor To Review My Breathing Space?

Yes. While Breathing Space protects you from most creditor actions, your creditors can ask your debt adviser to review your Breathing Space. This usually happens if the creditor believes that:

• You do not meet the eligibility criteria for the scheme. 
• The debt you owe them is not eligible for Breathing Space protections. 
• You have enough money to repay the debt. 

Your debt adviser will carry out this review. If they agree with the creditor that there are sufficient grounds, your Breathing Space can be cancelled.

Court Involvement

If a creditor is unhappy with the outcome of the review, they can apply to court to try to have your Breathing Space cancelled or to have their debt removed from the scheme.

• If the court agrees with the creditor’s request, you may be asked to pay the creditor’s legal costs. 
• In some cases, a creditor may bypass the review process and go directly to court to challenge whether a debt is eligible. This is more likely if the creditor had already started court action before your Breathing Space began. 

Your debt adviser will provide guidance throughout this process, helping you understand your options and what steps to take if a creditor challenges your Breathing Space.

Are You Looking For Help To Manage Your Debts?

• Explore debt solutions tailored to your circumstances.
• Get guidance on options that can help make repayments manageable.
• Receive compassionate, ethical advice every step of the way.

Get Debt Help

What Is Breathing Space Register?

The Breathing Space Register is an official record of all individuals who are currently in a Breathing Space period. It is maintained to ensure that creditors, debt advisers, and other relevant parties can verify whether someone is protected under the scheme.

Key Points About the Register

• Purpose: The register confirms that your Breathing Space is active, helping creditors know they must pause actions like calls, letters, or enforcement measures. 
• Who can access it: Approved debt advisers, creditors, and certain government bodies can check the register. The information is not public, so your privacy is protected. 
• Updates: When a Breathing Space period starts or ends, the register is updated to reflect the change. This ensures accurate tracking and enforcement of protections. 
• Peace of mind: By being on the register, you and your adviser can be confident that creditors are aware of your protected status and must comply with the scheme’s rules. 

The Breathing Space Register is an important tool that supports the scheme, making sure your debt protections are applied correctly and consistently. 

Limitations of Breathing Space

While Breathing Space offers important protections, it is not a complete solution to debt problems. Therefore, to effectively plan your next steps, it’s always important to have a clear understanding of its limitations.

What Breathing Space Does Not Do

• Does not write off debts: Breathing Space pauses creditor actions and freezes interest or fees, but your debts still exist and must eventually be repaid. 
• Limited protection for new debts: Any new debts or arrears that arise after the Breathing Space period begins are usually not covered. 
• Certain debts are excluded: Secured debts (like mortgages or hire purchase), student loans, court fines, child maintenance, and some business debts are not fully protected. 
• Does not guarantee creditor cooperation after the period: Once Breathing Space ends, creditors can resume collection actions if no long-term solution is in place. 

Other Considerations

• Temporary relief only: Standard Breathing Space lasts for up to 60 days, and Mental Health Crisis Breathing Space lasts for the duration of treatment plus 30 days. This is a short-term pause, not a permanent solution. 
• Joint and guarantor debts: Protections apply to the applicant, but may not fully protect other parties, such as guarantors, unless they apply separately. 
• Possible review or cancellation: Creditors may request a review if they believe eligibility criteria are not met, and Breathing Space can be cancelled under certain circumstances. 

Breathing Space is a useful tool for pausing pressure and gaining time, but it works best when combined with professional debt advice and a longer-term debt management plan. 

What Happens After Breathing Space Ends 

When your Breathing Space period comes to an end, the temporary protections provided by the scheme are lifted. It’s important to be prepared and understand what will happen next.

Here’s what you need to know and can do:

1. Resumption of Creditor Actions

Creditors can resume contact and enforcement actions once Breathing Space ends. This includes calls, letters, and legal action if debts remain unpaid. Interest, fees, and charges that were paused during Breathing Space may start to accrue again, depending on the type of debt.  

2. Explore Alternative Debt Solutions

Breathing Space is a short-term pause, so it does not solve your debts permanently. After the period ends, we recommend having an alternative debt solution in place in order to solve your debt issue.

There are several options available in the UK, each with its own eligibility criteria. Choosing the right option can help resolve your debt issues, but the wrong one may make your financial situation worse.

Therefore, it is essential to seek professional advice before committing to any debt solution. A debt advisor can help you assess your situation and guide you in selecting the most appropriate option.

Some of The Key Debt Solutions Available in England, Northern Ireland, and Wales:

• Debt Management Plan (DMP): An informal arrangement where you make monthly payments toward your debts. There is no legal commitment, but your creditors may agree to reduce interest or freeze fees.
• Individual Voluntary Arrangement (IVA): A formal agreement where you make regular payments to creditors over 5 or 6 years. The remaining debt may be written off, but this solution has strict criteria.
• Debt Relief Order (DRO): Designed for individuals in severe financial distress, this option freezes interest and allows a year of no payments, potentially leading to debt resolution.
• Bankruptcy:  A formal legal process that can clear most debts if you are unable to repay them. Bankruptcy provides a financial reset, but it also has serious long-term consequences, including restrictions on your financial affairs and potential asset loss.

Debt Solutions Available in Scotland

1. Protected Trust Deed: A formal agreement to repay part of what you owe over four years. The remaining debt may be written off afterward. It is legally binding and affects your credit rating.
2. Debt Arrangement Scheme (DAS): A government-backed scheme allowing you to repay your debts through a Debt Payment Programme (DPP) based on what you can afford. Interest and charges could be frozen, and creditors can’t take legal action.
3. Sequestration (Scottish Bankruptcy): A formal insolvency process where most debts may be written off, but assets may be sold to repay creditors. It offers a fresh start but comes with serious consequences.
4. Minimal Asset Process (MAP): A simplified form of bankruptcy designed for individuals with low income and few assets. It allows eligible debts to be written off after six months, provided the individual fully cooperates with the process. However, in practice, the process may take longer depending on the complexity of the case. MAP also offers lower fees and reduced administrative burden compared to full bankruptcy.

Caution: These debt solutions have both advantages and drawbacks, so it’s important to carefully weigh your options before making a decision.

Furthermore, if you are unsure which debt solution suits your situation, speak to a professional debt advisor. Free, independent advice services like MoneyHelper can help you assess your finances and find the best option for you.

Next Steps to Take

• Continue working with your approved debt adviser to create a sustainable plan. 
• Review your budget and finances to identify areas for repayment or adjustment. 
• Keep track of your debts to prevent further escalation or additional fees. 

By planning ahead and having a strategy in place, you can make the most of the breathing room provided by the scheme and work toward becoming debt-free without falling back into financial difficulty.

Final Thoughts

Breathing Space is a valuable tool for anyone in the UK struggling with debt. It provides temporary relief by pausing creditor actions, freezing interest and fees on qualifying debts, and giving you the time to focus on creating a practical plan with professional advice. While it does not write off debts or solve long-term financial problems, it offers a structured pause to regain control and reduce stress.

To make the most of Breathing Space, it’s important to understand which debts are included, meet the eligibility requirements, and work closely with an approved debt adviser. Once the period ends, planning your next steps is crucial. 

Furthermore, exploring alternative debt solutions, such as a Debt Management Plan, IVA, DRO, or bankruptcy, can help you address your financial situation more permanently.

By using Breathing Space wisely and combining it with professional guidance, you can take a positive step toward managing your debts, protecting your finances, and building a path to long-term financial stability. 

Key Takeaways

• Breathing Space is a UK government-backed scheme designed to give people temporary relief from creditor pressure while dealing with debt. 
• Two types of Breathing Space exist: Standard (up to 60 days) and Mental Health Crisis (duration of treatment plus 30 days). 
• Protection from creditor actions includes pausing calls, letters, legal action, and enforcement measures during the period. 
• Interest, fees, and charges on qualifying debts are frozen, preventing debts from growing while you plan your next steps.  
• Eligibility requirements include being a resident of England or Wales, having qualifying debts, and working with an approved debt adviser. 
• Not all debts are covered; excluded debts include student loans, secured debts (new arrears), court fines, child maintenance, and some business debts. 
• Application process requires speaking to a debt adviser who assesses your finances, confirms eligibility, and submits the application on your behalf. 
• Breathing Space is temporary; once it ends, creditors can resume actions, so it’s important to have a long-term debt solution in place. 
• Alternative debt solutions include Debt Management Plans (DMPs), Individual Voluntary Arrangements (IVAs), Debt Relief Orders (DROs), bankruptcy, and Scotland-specific schemes like DAS and Protected Trust Deeds. 
• Professional advice is essential: working with an approved debt adviser ensures correct application, helps explore suitable debt solutions, and prevents further financial stress.  

FAQs