HM Treasury: New Breathing Space scheme announced
Industry News | 19/06/19
HM Treasury announced details of the new Breathing Space Scheme. The new plans will see the introduction of a 60-day Breathing Space period from 2021, where people with problem debts will be protected from enforcement action from creditors and will see their interest frozen.
During this period individuals must engage with professional debt advisers, so they can find a long-term solution to their debts and get back on track with payments. As part of these plans, and to acknowledge the links between problem debt and mental health issues, the government is also confirming that individuals receiving NHS treatment for mental health crisis will not need to seek debt advice during the 60-day period. This will remove a key barrier to access for this group. They will continue to receive the same Breathing Space protections, which will last for the whole of their treatment. The Breathing Space Scheme was also the subject of a debate in both the House of Parliament and House of Lords.
