Breathing Space (Debt Respite Scheme): What It Is and How It Helps

Breathing Space is a government scheme in England & Wales that can pause most enforcement, contact and new interest/charges on eligible debts while you get advice and set up a plan. It’s designed to protect essentials and give you time to choose the right route (DMP, IVA, DRO or other solutions).

Trusted links: GOV.UK — Options for dealing with your debts (Breathing Space) • MoneyHelper — Breathing Space • Citizens Advice — Breathing Space

Who Qualifies for Breathing Space?

• You live in England or Wales and have problem debt.
• You must work with an authorised debt adviser — they start the application.
• You aren’t already in a current Breathing Space (it’s usually one at a time).

Standard Breathing Space: up to 60 days of protection.
Mental Health Crisis Breathing Space: lasts for the duration of crisis treatment plus 30 days (started by an adviser on evidence from an approved mental health professional).

More detail for creditors and rules: Insolvency Service — Guidance.

What Pauses — and What Continues — During Breathing Space

Typically Pauses

• Most contact and enforcement by included creditors
• Most interest and default charges on included debts
• Progress of many court actions related to included debts

Still Continue

• Ongoing priority bills where they fall due (e.g., rent, council tax, utilities)
• Excluded debts (e.g., certain criminal fines, child maintenance, some student loans)
• New debts you take out after Breathing Space begins

Always double-check your exact mix with an adviser and the official guidance above.

Debts Commonly Included vs. Excluded

Often Included

• Credit cards, loans, overdrafts, catalogues, store cards, BNPL
• Council tax arrears, energy arrears, rent/mortgage arrears (ongoing bills still payable)
• Debt collector and solicitor accounts linked to the above

Often Excluded / Treated Differently

• Certain criminal fines and child maintenance
• Some student loans and court orders
• Secured debts’ ongoing payments (only arrears typically paused)

Use official sources for the definitive list: MoneyHelper • Citizens Advice.

How to Apply for Breathing Space (Step-by-Step)

1. Talk to an adviser: Breathing Space is started by an approved debt adviser.
2. Gather details: creditor names, reference numbers, balances, court/collector letters.
3. Registration: your adviser registers you with the Insolvency Service.
4. Protections begin: creditors are notified; most contact/enforcement should pause.
5. Choose a plan: use the time to set up a realistic long-term solution.

Official overview: GOV.UK • Independent explainer: StepChange.

Mental Health Crisis Breathing Space (MHCBS)

If you’re in mental health crisis treatment, MHCBS can provide protections for the entire treatment period plus 30 days. An authorised adviser starts it when an approved mental health professional confirms eligibility.

Useful reading: MoneyHelper • Citizens Advice.

Breathing Space for Council Tax & Rent

Arrears can usually be included so most enforcement pauses, but your current-year council tax and ongoing rent must still be paid where due. If a bailiff has written or visited, protections can help you agree a sensible plan without pressure.

Cross-check: Citizens Advice — Breathing Space.

Breathing Space vs. CCJs, Court Action & Bailiffs

Once in Breathing Space, most new enforcement activity on included debts should pause. Existing claims may be stayed and fresh interest/charges usually stop. You’ll use the time to agree a realistic plan or consider urgent court steps where needed.

Learn the basics: GOV.UK — CCJs • Citizens Advice — Bailiffs.

What Happens After Breathing Space Ends?

Protections are temporary. The goal is to set up a long-term solution while you have the pause. That might be a DMP, IVA, DRO or a tailored plan depending on your budget, debt types and goals.

Use our resources to compare options: Compare Solutions • Debt Calculator.

Not in England or Wales? Scotland & Northern Ireland

Breathing Space applies to England & Wales. Scotland has a separate statutory moratorium that can protect you while you set up a solution, and Northern Ireland has different processes. See official help below and we’ll guide the right route for your nation.

Official starting points: mygov.scot — Debt & Money • nidirect — Money & Debt.

Breathing Space — Frequently Asked Questions

How long does it last?

Up to 60 days for Standard Breathing Space. Mental Health Crisis Breathing Space lasts the crisis treatment period plus 30 days.

Can I apply myself?

No. An authorised debt adviser must start it for you.

Does it affect my credit file?

The scheme itself isn’t a product like a loan, but your underlying arrears and any court action may already impact your file. The aim is to stabilise your situation and set up an affordable plan.

Can I use it more than once?

You can’t normally have more than one active at a time, and there are rules about repeat use. Talk to an adviser about your circumstances.

Is every debt covered?

No. Some debts are excluded or treated differently. Arrears on priority bills can often be included but current bills still need paying.

Read more: MoneyHelper — Breathing Space • Insolvency Service Guidance