Success of new breathing space scheme ‘critically dependent’ on including debts owed to government

The government’s new breathing space scheme must protect people from debts owed to public sector organisations to be effective, according to the Money Advice Trust, the charity than runs National Debtline and Business Debtline.

The Treasury has been consulting on proposals for the new scheme, which will offer people seeking debt advice protection from interest, charges and enforcement action on their debts for 60 days – giving them the time and space they need to get back on the road to financial health.

In its response to the consultation, the Money Advice Trust has welcomed several aspects of the proposals but warns that their success is “critically dependent” on including debts owed to central and local government in both breathing space and the new ‘statutory debt repayment plan’ also under consultation. Current proposals do not specifically exclude the public sector from either scheme, but neither has the government explicitly confirmed that these will be included.

Source: MAS
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