Breathing Space Debt Respite Scheme
What is the Breathing Space Scheme?
On the 4th May 2021, new regulations came into effect to help people in problem debt to better manage their finances. There are two types of Breathing Space, a standard space and a mental health crisis space.
The Breathing Space scheme provides protections for people in problem debt by pausing enforcement action and freezing charges, interest and fees for qualifying debts. The standard moratorium freezes these for up to 60 days and a mental health crisis moratorium provides further protections, lasting as long as a person's mental health crisis treatment, plus 30 days.
Breathing Space is not a debt relief scheme. The debt remains due, it (and arrears) just cannot be enforced during the Breathing Space period.
How do I know if I am eligible?
To be eligible for a Breathing Space, you need to be an individual who:
- Is a resident, or normally lives in England or Wales
- Is not undischarged bankrupt
- Does not have a current debt relief order, individual voluntary arrangement or an interim order
- Has not already been entered into a Breathing Space
- Has a qualifying debt where they cannot meet payments
To enter a mental health crisis Breathing Space, you must meet the above requirements, plus be receiving mental health crisis treatment.
What are qualifying debts?
The debts that qualify for a Breathing Space are:
- Council tax arrears
- Benefit overpayments
- Parking fines
- Penalty charges
- Rent arrears
- Any other debt, either in a sole or joint name
Debts that are excluded are:
- Repayment of advances of Universal Credit, PIP, JSA or ESA
- Ongoing Council Tax and Business Rates payments
- Ongoing taxes, duties or NI contributions
- Ongoing rent, insurance or mortgage payments
- Ongoing utility charges (e.g. gas or electric charges)
- VAT owed from running a business
- Debts or liabilities owed due to fraud
- Child maintenance orders
How do I start a Breathing Space?
To enter into a Breathing Space, you need to contact a Debt Advisor. Citizen's Advice Fareham can provide this service and is accessed by either phone on 01329 223117 or via webchat at www.citizensadvice.org.uk 
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The Council's Housing Welfare Officer can also provide this service. Please contact housing@fareham.gov.uk or 01329 824373.
A Debt Advisor cannot charge you for providing advice or entering you into a Breathing Space.
What happens next?
Once the Debt Advisor has confirmed that you are eligible, they will enter your details onto the Breathing Space Register. This will send out a notification to all creditors to who you owe debt to. They will not be able to contact you to request payment of the debt(s) or undertake enforcement action against you.
If you are in a standard Breathing Space, your Debt Advisor will contact you for a mid-way review. This is to ensure the Breathing Space is still appropriate for you and that you are still paying your ongoing liabilities.
Once the Breathing Space ends creditors can start to:
- Apply interest charges again
- Start enforcement action
- Continue with legal proceedings
For more information please contact the Council's Housing Welfare Officer on housing@fareham.gov.uk or 01329 824373.