Debtor protection (‘breathing space’ scheme)
The debt respite scheme (‘breathing space’) gives certain legal protections to consumers with debts.1DRS Regs There are two types of breathing space. •A standard breathing space is available to anyone with problem debt who engages with a debt adviser. It gives them legal protections from creditor action for up to 60 days. The protections include pausing most enforcement action and contact from creditors, and freezing most interest and charges on their debts.
•A mental health crisis breathing space is available to someone who is receiving mental health crisis treatment. It has stronger protections, lasting as long as the person’s mental health crisis treatment, plus 30 days. Protections, prescribed in legislation, include a restriction on enforcement procedures in respect of the fitting of prepayment meters.2Reg 7(h) and (i) DRS Regs
The scheme is set to be reviewed by the Treasury with a report published by 4 May 2026.3Reg 40 DRS Regs