Breathing Space Debt Scheme: A Practical UK Guide for 2026
How the Breathing Space debt scheme works in 2026: who qualifies, the 60-day pause, mental health route, what it freezes and how to apply step by step.
Quick answer
Breathing Space is a free, legal protection in England and Wales that pauses interest, charges and most enforcement on qualifying debts while you take debt advice. The standard route lasts 60 days; a mental health crisis route lasts as long as treatment continues plus 30 days. You apply through an FCA-authorised debt adviser, not directly. It pauses debt -- it does not cancel it.
What Breathing Space actually does
The Breathing Space scheme, formally the Debt Respite Scheme, was introduced to give people in problem debt a protected period to get their finances onto a stable footing without creditors piling on pressure. It is best understood as a legal pause button rather than a form of debt relief.
While a breathing space is active, creditors of the debts you include must do three things. First, they must stop adding interest, fees, penalties and most charges to those debts. Second, they must pause enforcement action -- this includes court action, instructing bailiffs or enforcement agents, and chasing you for payment. Third, they cannot contact you to ask for payment on the protected debts during the period.
That combination matters. For many households, it is the relentless interest and the constant contact that turn a difficult situation into a crisis. Removing both, even for a fixed window, creates room to think clearly, gather paperwork and decide on a realistic plan.
The two routes: standard and mental health crisis
There are two versions of the scheme, and they work quite differently.
The standard breathing space lasts 60 days. To start it, you must be receiving debt advice from an authorised provider, be unable to repay your debts as they fall due, and not have had a standard breathing space in the previous 12 months. Your adviser carries out a midway review between day 25 and day 35 to confirm you still meet the conditions and are engaging with the process. If you stop engaging, the breathing space can be cancelled early.
The mental health crisis breathing space is more generous and is designed for people receiving crisis mental health treatment. It lasts for the entire duration of that crisis treatment and then continues for a further 30 days after treatment ends. There is no fixed 60-day cap, and there is no 12-month restriction on how often it can be used. It can be started by someone acting on the person's behalf, and it requires evidence from an approved mental health professional confirming that crisis treatment is being received.
| Feature | Standard route | Mental health crisis route |
|---|---|---|
| Length | 60 days | Duration of treatment plus 30 days |
| Midway review | Yes, day 25 to 35 | Not required in the same way |
| Once per 12 months | Yes | No limit |
| Who can start it | The person in debt, via adviser | Person, carer or other on their behalf |
| Evidence needed | Debt advice assessment | Approved mental health professional |
Who is eligible
To use either route you generally need to live or usually reside in England or Wales. The scheme is not available in Scotland or Northern Ireland -- Scotland has its own Debt Arrangement Scheme and a statutory moratorium, while Northern Ireland has no direct equivalent.
You also need at least one qualifying debt and you must be unable to repay your debts as they fall due, or unlikely to be able to. Crucially, you cannot apply to the Insolvency Service register yourself. The protection is started on your behalf by an FCA-authorised debt adviser or by a local authority that provides debt advice. The adviser's job is to check that breathing space is appropriate for you and that there is a realistic route to a sustainable outcome.
Which debts are included -- and which are not
Most ordinary personal debts qualify. That typically covers:
- Credit cards, store cards and catalogue debt
- Personal loans and overdrafts
- Utility arrears (gas, electricity, water)
- Rent arrears and council tax arrears
- Some benefit overpayments and tax debts
Some debts are excluded and keep running as normal. These commonly include secured debts such as a mortgage where you are keeping up payments, court fines, child maintenance, and debts taken on through fraud. Student loans are also generally outside the scheme, and they are collected through the tax system rather than chased like a consumer debt -- our
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Open Student Loan calculatorWhat you still have to do during the pause
A breathing space is not a holiday from your finances. You remain responsible for:
- Continuing to pay any debts that are not included in the scheme
- Keeping up with ongoing bills as they fall due (rent, mortgage, council tax, utilities)
- Engaging with your debt adviser and attending the midway review on the standard route
If you fail to keep up ongoing payments or stop engaging, the adviser can cancel the breathing space. The 60 days are there to be used productively: gathering statements, listing every creditor, building an accurate budget and deciding what comes next.
This is where getting your numbers straight pays off. Knowing your true monthly take-home figure is the foundation of any realistic repayment offer. If your income comes from employment, our
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Open Take-Home Pay calculatorHow to apply, step by step
Because you cannot start a breathing space directly, the process runs through an adviser.
- Find an authorised debt adviser. This can be a free national debt charity or a local authority debt advice service. Free help is widely available and you should never have to pay for debt advice.
- Have a full debt assessment. The adviser reviews your income, outgoings and the full list of who you owe. This is also where you build a workable budget.
- Confirm eligibility. The adviser checks you meet the conditions and that breathing space is the right tool for your situation.
- Breathing space starts. The adviser records it on the Insolvency Service register and notifies your creditors, who must then apply the protections.
- Midway review (standard route). Between day 25 and day 35 the adviser confirms you still qualify and are engaging.
- Agree your next step. Before the pause ends, you and your adviser settle on a sustainable solution.
For the mental health crisis route, the extra step is that an approved mental health professional must provide evidence that crisis treatment is being received. Someone else, such as a carer, can set the process in motion on the person's behalf.
What happens when it ends
When a standard breathing space reaches day 60, or a mental health route ends 30 days after treatment concludes, the protections lift. Creditors can resume charging interest and pursuing the debt under normal terms.
That is precisely why the pause should end with a plan in place. Depending on your circumstances, the next step might be an informal repayment arrangement, a debt management plan, or a statutory insolvency solution. Each has different consequences for your credit file and your assets, and your adviser will talk you through the trade-offs. The breathing space is the bridge; the agreed solution is the destination.
A note on getting the numbers right
Problem debt is rarely just a spending issue -- often it is a budgeting and visibility issue. Before and during a breathing space, build a clear picture of what comes in and what must go out. If you are self-employed, remember that your tax and National Insurance set aside money is not spare cash, and you should model it carefully rather than treat gross income as disposable.
A breathing space buys time. Used well, those 60 days -- or longer on the mental health route -- can be the turning point that moves you from firefighting to a plan you can actually stick to. Used poorly, the same balances simply reappear with the meter running again. The difference almost always comes down to engaging early, telling your adviser the full picture, and being honest about the budget.
If you take one action from this guide, make it this: contact a free, authorised debt adviser. They can confirm whether breathing space fits your situation and start it for you, at no cost.
Frequently asked questions
What is the Breathing Space debt scheme?
Breathing Space (officially the Debt Respite Scheme) is a legal protection in England and Wales that pauses most enforcement action and interest on qualifying debts while you get debt advice. The standard route gives a 60-day breathing space. A separate mental health crisis route lasts for as long as your crisis treatment continues, plus 30 days. It does not write off what you owe; it gives you protected time to find a sustainable solution.
Who is eligible for Breathing Space?
You must live or usually reside in England or Wales, owe one or more qualifying debts, and not already have an active breathing space in the last 12 months (for the standard route). You apply through an FCA-authorised debt adviser or a local authority that provides debt advice, not directly yourself. The adviser checks that breathing space is appropriate for your circumstances before starting it.
How long does Breathing Space last?
The standard route lasts 60 days. The adviser carries out a midway review between day 25 and day 35 to confirm you still meet the conditions. The mental health crisis route lasts for the whole period you are receiving crisis mental health treatment, plus a further 30 days after that treatment ends, with no fixed 60-day cap.
Does Breathing Space stop interest and charges?
Yes. While breathing space is active, creditors must stop charging interest, fees, penalties and most charges on the debts included. They must also pause enforcement action such as court action, bailiff visits and contact chasing payment. When breathing space ends, normal terms can resume, so it is a pause rather than a permanent freeze.
Which debts are covered by Breathing Space?
Most personal debts qualify, including credit cards, personal loans, overdrafts, store cards, utility arrears, rent arrears, council tax arrears and some benefit overpayments. Certain debts are excluded, such as secured debts like a mortgage where you keep paying, court fines, child maintenance, student loans and debts incurred through fraud. Your adviser will confirm exactly which of your debts can be included.
Do I still have to make payments during Breathing Space?
You remain liable for ongoing liabilities. You must keep paying any debts not included in the scheme and keep up with ongoing bills such as rent, mortgage, council tax and utilities for the period the breathing space covers. The scheme pauses enforcement on included debts but does not cancel your day-to-day obligations, so budgeting carefully during the pause matters.
Will Breathing Space affect my credit score?
Breathing Space itself is not a public register entry in the way an insolvency order is, but creditors are informed and may record that an account is in a debt respite period. Any missed payments leading up to it will already affect your file. The longer-term solution you agree, such as a debt management plan or an insolvency option, will have its own credit impact, which your adviser can explain.
How do I apply for Breathing Space?
You cannot apply directly. Contact an FCA-authorised debt advice provider, such as a free national debt charity or a local authority debt service. The adviser assesses your situation, confirms you are eligible, and starts the breathing space on the Insolvency Service register. For the mental health route, an approved mental health professional must provide evidence that you are receiving crisis treatment.
Is Breathing Space available in Scotland and Northern Ireland?
No. The Breathing Space scheme described here applies only to England and Wales. Scotland has its own statutory debt protections, including the Debt Arrangement Scheme and a separate moratorium on diligence. Northern Ireland does not currently have an equivalent statutory breathing space. If you live outside England or Wales, a local debt adviser can explain the protections available to you.
What happens when Breathing Space ends?
When the 60 days end, or the mental health route concludes 30 days after treatment finishes, creditors can resume charging interest and pursuing the debt under normal terms. The aim is that during the pause you have agreed a sustainable next step with your adviser, such as a repayment plan or an insolvency solution. Breathing space is a bridge to a solution, not the solution itself.
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