The Breathing Space scheme explained

What is Breathing Space?

Breathing Space gives up to 60 days (opens in a new tab) of protection in England and Wales while you get debt advice: creditors cannot take enforcement action (opens in a new tab), contact you about the debts included, or add interest or charges. It is not a payment holiday: GOV.UK says (opens in a new tab) "You'll still need to make your debt repayments", including ongoing bills such as rent, mortgage and council tax. The scheme does not extend to Northern Ireland. It sits alongside the other debt solutions in England and Wales as time to get advice and choose one.

There are two kinds. A standard breathing space lasts up to 60 days. A mental health crisis breathing space lasts as long as you receive mental health crisis treatment, plus another 30 days.

We cannot start a breathing space for you: the law allows only an FCA-authorised debt adviser or a local authority to do it.

What debts does Breathing Space cover?

Breathing Space covers most personal debts, including arrears on credit cards, loans, rent and council tax, but not debts such as (opens in a new tab) court fines, child maintenance, student loans, social fund loans or debts from fraud. You still have to keep paying ongoing bills such as your mortgage, rent, council tax and energy. The Insolvency Service's guidance for creditors (opens in a new tab) lists both sides.

Council tax arrears are covered once the council has sent a reminder notice or all of that year's instalments have fallen due, and the council must then pause enforcement on them; you still have to pay your ongoing council tax. Some sole trader business debts qualify too, though not if the debt relates only to the business and you are VAT registered, or you are in a partnership.

How do I get Breathing Space?

You cannot apply for Breathing Space yourself online: an FCA-authorised debt adviser or a local authority must check you are eligible and start it for you, and the adviser submits the application on your behalf (opens in a new tab) if it is the right thing to do. Those are the only two kinds of debt advice provider (opens in a new tab) the regulations allow, and GOV.UK says free advisers can help online, over the phone or in person.

If you are receiving mental health treatment and cannot speak to a debt adviser yourself, someone else can do so for you. You can get a breathing space if you live or usually live in England or Wales and:

• you do not have a debt relief order, an IVA or an interim order, and you are not an undischarged bankrupt
• you are not already in a breathing space
• you have not used the scheme in the last 12 months, unless it was for a mental health crisis

What happens when Breathing Space ends?

When a standard breathing space ends after 60 days, your creditors can start adding interest and charges again from that date and take action to recover the debt, but they cannot backdate (opens in a new tab) the interest or charges for the time it lasted. They cannot take that action if you have entered a debt solution by then, such as a debt relief order, bankruptcy or an Individual Voluntary Arrangement.

It can also end early. The adviser reviews it between day 25 and day 35, and can cancel it if you have not kept to the rules, including paying ongoing costs such as your mortgage or rent on your home, council tax, insurance and energy and water bills while it lasts. A creditor can also ask for a review on limited grounds.

The weeks are for choosing a way forward with your adviser. James Kaye and Nick Morgan, our licensed insolvency practitioners, can advise on an IVA or bankruptcy if either is the right next step; fees apply to an IVA.

Does Breathing Space stop bailiffs?

Yes, during Breathing Space creditors and their enforcement agents must stop taking action for the debts covered, including sending bailiffs: taking control of or selling your goods is enforcement action that regulation 7 (opens in a new tab) forbids during the moratorium.

The creditor guidance (opens in a new tab) notes one exception: goods a bailiff had already removed before the breathing space started may still be sold.

Will Breathing Space affect my credit file?

Starting a Breathing Space should not affect your credit file on its own and leaves no marker afterwards, but lenders that report payments keep doing so during it, so missed payments can still show. The Insolvency Service's guidance (opens in a new tab) says there should be "no automatic flag or code that will stay on the file after the breathing space has finished".

What is a mental health crisis Breathing Space?

A mental health crisis Breathing Space lasts for as long as you receive mental health crisis treatment plus 30 days; an approved mental health professional must certify the treatment (opens in a new tab), and a debt adviser then starts the Breathing Space. Unlike the standard scheme, it has no fixed 60-day limit.

A carer, a mental health nurse, a social worker or another named professional can ask a debt adviser for one on your behalf. We cannot start one.

Is Breathing Space the same as a debt relief order?

Breathing Space is not a debt relief order: it is a temporary pause on creditor action, while a DRO is a formal insolvency solution that writes off qualifying debts after 12 months. Our guide to debt relief orders sets out who qualifies and how to apply.