Breathing space for individuals in problem debt

Note: This briefing paper provides background information on past consultations on proposals to introduce new debt measures in England and Wales. For information on the current position, see the Library’s briefing paper “Debt Respite Scheme: a breathing space for those in debt” (CBP 9256).

The new Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Reguations 2020 (known as the ‘Breathing Space Regulations’) have been in force since 4 May 2021. They apply to England and Wales. The Government has yet to set a date for the implementation of the proposed statutory debt repayment plan. The proposed plan would enable a person in financial difficulty to enter a statutory agreement to repay their debts under a manageable timetable with protection from creditor enforcement acion.

The Scottish Debt Arrangement Scheme already provides debtors with a short breathhing space and statutory repayment plan.