Breathing Space explained

If you’re struggling with debt, Breathing Space (also known as The Debt Respite Scheme) can give you the time and protection you need to take control.

Below, we’ve explained how Breathing Space works, who it’s for and what to expect. If our advisors think it might be suitable for you, they’ll discuss it as part of your debt advice journey.

What is Breathing Space?

Breathing Space is a government scheme designed to give you time to get debt advice and put a plan in place.

Once you’re in Breathing Space:

  • Your creditors can’t chase you for payment
  • Interest, fees and charges are frozen
  • Enforcement action (like bailiff visits or court proceedings) is paused

There are two types of Breathing Space:

  • Standard Breathing Space – lasts up to 60 days
  • Mental Health Crisis Breathing Space – lasts for the duration of your mental health treatment, plus 30 days

To access Mental Health Breathing Space, an Approved Mental Health Professional (AMHP) must confirm you’re receiving crisis treatment. While we can’t set up this type of Breathing Space at PayPlan, we can signpost you to the organisation who can help.

Who is Breathing Space for?

You could be eligible for standard Breathing Space if you:

  • Live in England or Wales
  • Are behind on some or all your debt repayments
  • Are not in a DRO, IVA or bankruptcy
  • Haven’t used Breathing Space in the last 12 months

Breathing Space may be right for you if:

  • You need protection from legal action while exploring your options
  • You’re overwhelmed and need time to get support in place

However, it might not be suitable if:

  • You’re not facing enforcement action and can manage the debts with budgeting support
  • You have savings or assets (like a car) you could use to repay your debts
  • You’re able to act quickly and put a repayment plan in place 

A debt advisor will assess your circumstances and explain if Breathing Space is the right step, including any potential impact on your credit file and what you’ll be expected to do during the period.

How does Breathing Space work?

If your advisor recommends Breathing Space:

  1. They’ll check your eligibility
  2. If you decide to go ahead, your details will be added to the official Breathing Space register
  3. Your protections will begin the next day and your creditors will be notified

What happens during Breathing Space?

  • You must continue making your agreed payments to creditors if you can. If you can’t afford to, your advisor will help you explore temporary options.
  • All unsecured debts must be included – you can’t pick and choose.
  • You’ll have a midway review (between days 25 – 35) to check:
  • You’re still engaging with debt advice
  • You’re keeping up with priority bills (like rent, mortgage and council tax)
  • You’re not taking out new credit over £500

If you miss the review or disengage, Breathing Space could be cancelled.

At the end of 60 days, the protections end automatically. Creditors can resume interest and charges and take further action so it’s important to have a plan in place before this happens.

Does Breathing Space mean I can stop paying my debts?

No – Breathing Space isn’t a payment holiday. You’re expected to continue making your usual payments where possible. Missed or reduced payments may still appear on your credit file.

Which debts are covered (and which ones aren’t)?

Most unsecured debts qualify, including:

  • Credit cards and store cards
  • Personal and payday loans
  • Overdrafts
  • Utility bill arrears (gas, electricity, water)
  • Council tax arrears
  • Mortgage or car finance arrears (not ongoing payments)

Some debts aren’t eligible, such as:

  • Ongoing secured debt payments (e.g. mortgage instalments)
  • Debts from fraud
  • Criminal fines or confiscation orders
  • Child maintenance and court-ordered obligations
  • Student loans
  • Budgeting loans or crisis loans
  • Advance payments of Universal Credit
  • Debts taken out during Breathing Space
  • Council tax payments not yet due

Your advisor will explain which of your debts are eligible.

Joint debts and guarantor loans 

You can include joint debts in Breathing Space even if the other person doesn’t apply. They’ll still benefit from protection (such as frozen interest and no chasing), but:

  • They may temporarily lose access to the account
  • Their credit score may still be affected
  • They’ll still be responsible for making payments

If you have a guarantor loan, only you will be protected. Your guarantor will still be contacted for payment unless they apply for their own Breathing Space separately.

Benefits and things to be aware of

Benefits:

  • Time to breathe – space to think without being chased
  • Frozen interest and charges – your debt won’t grow during the 60 days
  • Enforcement action paused – no bailiffs, CCJs or new legal action

Things to be aware of:

  • You must include all unsecured debts – you can’t exclude any
  • You must tell your advisor about all debts – anything missed won’t be protected
  • You’ll still owe the money – this is not a way to write off debt
  • You need a plan for what happens when Breathing Space ends
  • Missed payments can still affect your credit file
  • Your name will appear on the Breathing Space register (held for 15 months)
  • Some creditors may restrict access to overdrafts or credit cards
  • Joint debts protect both people – but only you will appear on the register
  • Guarantors aren’t protected unless they apply separately
  • Mortgage arrears may be flagged, potentially affecting future deals
  • You can’t apply for credit over £500 during this period
  • You can only use Breathing Space once every 12 months

In summary

  • Breathing Space gives you up to 60 days of protection (or longer for mental health crisis treatment)
  • It must be set up by a qualified debt advisor
  • Interest, charges and enforcement action will be paused
  • It covers most unsecured debts
  • You must continue to pay priority bills and maintain any agreements where possible
  • Only one Breathing Space is allowed in a 12-month period
  • A midway review is required to continue protection
  • After 60 days, it automatically ends and creditors can contact you again

Need help deciding?

If you’d like to find out more about Breathing Space or explore your options for dealing with debt, get started online or call us free on 0800 316 1833.