If you’re struggling with a short-term loan alongside other debts, there is a formal legal protection that can pause creditor action while you get proper advice — but it has to be set up through a recognised adviser, not requested directly from your lender, and it isn’t a way of writing off what you owe.
What the Debt Respite Scheme actually is
The Debt Respite Scheme, widely known as Breathing Space, is a legal protection available in England and Wales that gives someone with problem debt a defined period of relief from creditor action while they get debt advice and work out a plan. During that protected period, most creditors — including short-term and cash advance lenders — must pause enforcement action, stop most contact chasing the debt, and freeze interest and additional charges on the included debts.
How long it lasts, and what it doesn’t do
The standard version of Breathing Space runs for 60 days. It is important to be clear about what this protection is and isn’t: it does not cancel, reduce or write off the debt itself, and interest and charges that were already added before the Breathing Space started aren’t automatically removed. What it does is create a genuinely protected window — free of mounting fresh charges and creditor pressure — during which a proper debt advice plan can be worked out, whether that ends up being a repayment arrangement, a debt management plan, or a more formal insolvency route where appropriate.
There is also a separate Mental Health Crisis Breathing Space, available to someone receiving crisis mental health treatment, which lasts for the duration of that treatment plus 30 days, and can be started by an approved mental health professional on the person’s behalf without the person needing to contact a debt adviser directly first.
Only a recognised adviser can start it
A genuinely important practical point: you cannot simply notify a lender yourself that you are “in Breathing Space.” It has to be set up by a debt adviser regulated by the Financial Conduct Authority, or by a local authority in some cases, who registers the Breathing Space on a government-administered service. This includes free services such as StepChange, Citizens Advice, National Debtline and MoneyHelper’s debt advice locator, as well as some FCA-authorised commercial debt advice firms. Once registered, the protections apply automatically to the debts included, and creditors are notified through the same system.
Who can use it, and what debts are covered
Breathing Space is available to anyone in England or Wales with problem debt, assessed through a debt adviser as needing this kind of protection — there’s no fixed minimum debt level, but it’s intended for genuine problem debt situations rather than a single missed payment. Most types of consumer debt can be included, including short-term loans, credit cards, overdrafts and many household bills, though some specific debts — such as certain court fines, child maintenance and some student loan debts — are excluded from the scheme by design.
A person can generally only use the standard 60-day Breathing Space once every 12 months, which is a deliberate design feature to stop it being used as a repeated short-term shield rather than a genuine route into sorted debt advice.
What lenders can and can’t still do during it
- They can’t add new interest or fees to the included debt for the duration of the protection.
- They can’t start or continue most enforcement action, such as court action or contact from debt collectors, on the included debts.
- They generally can’t contact you directly to demand repayment of an included debt, though limited administrative contact is still allowed.
- They can still register missed payments that occurred before the Breathing Space started, and the underlying debt itself remains owed once the protection ends.
What happens when the 60 days ends
Breathing Space is designed as a starting point, not an endpoint. By the time the 60 days is up, the debt adviser who set it up should have worked through your situation with you and identified a realistic next step, whether that’s a manageable repayment plan negotiated directly with creditors, a formal debt management plan, or referral towards a more structured insolvency option if the level of debt genuinely warrants it. Once the protected period ends, normal interest, charges and contact from creditors can resume on any part of the debt that isn’t covered by whatever arrangement has since been put in place — which is why using the window to actually engage with the adviser’s process matters more than simply waiting the 60 days out.
FAQs
Can I apply for Breathing Space myself, directly with my lender?
No. It has to be arranged through a debt adviser regulated by the FCA, or in some cases a local authority, who registers it on the official government-administered service — a lender cannot grant it to you directly, and you can’t self-certify it.
Does Breathing Space stop interest that’s already been added?
No, it freezes further interest and charges from being added during the protected period, but it doesn’t remove interest and fees that had already accrued before the Breathing Space started.
How often can I use Breathing Space?
Generally once every 12 months for the standard version. The Mental Health Crisis Breathing Space works differently, tied to the length of a person’s crisis treatment rather than a fixed annual limit.