Glossary · UK
What is Breathing Space Scheme?
A government debt-respite scheme that temporarily pauses interest, fees and enforcement action against people in problem debt while they seek a solution.
Full Definition
The Breathing Space scheme, formally the Debt Respite Scheme, gives people in problem debt legal protection from creditor action while they get advice. It applies in England and Wales and is accessed through an FCA-authorised debt adviser rather than applied for directly. Standard breathing space lasts up to 60 days, during which most interest, fees, charges and enforcement action on qualifying debts are paused, and creditors cannot contact the debtor about those debts. A separate mental health crisis breathing space lasts as long as the person's crisis treatment, plus 30 days. The scheme does not write off debt or replace a formal solution such as a Debt Management Plan, IVA or bankruptcy; it simply creates space to find one. Ongoing liabilities like rent, mortgage and council tax must usually still be paid. It matters because it can halt spiralling charges and the stress of creditor pressure while a realistic repayment plan is arranged through a free debt charity.