House of Commons · Written Ministerial Statement
Breathing space
06 February 2020 · Treasury
Proposed by John Glen Con Salisbury
Summarised by AI from the official record, so it can contain mistakes.
At a glance
Key points
- The government reaffirms its commitment to implementing breathing space in 2021 to help individuals in problem debt.
- The initiative forecasts helping over 700,000 people in the first year, with numbers expected to rise to over a million annually.
- Those receiving mental health crisis treatment will be eligible for an extended period of protection under the breathing space scheme.
Issue summary
The statement is about the implementation of 'breathing space' for individuals in problem debt, providing protection from enforcement action and further interest/fees.
Action requested
The government reaffirms its commitment to implementing breathing space in 2021 as planned. It forecasts helping over 700,000 people in the first year, rising to over a million annually. Additionally, those receiving mental health crisis treatment will be eligible for an extended period of protection.
Key facts
- Breathing space provides up to 60 days of protection from enforcement action and further interest/fees on debts.
- People receiving treatment for mental health crises can enter breathing space without seeking advice from a debt adviser and remain in it for the duration of their crisis treatment plus an additional 30 days.
- The impact assessment forecasts 700,000 people to be helped in the first year, rising to over a million annually.
- 25,000 - 50,000 people per year are expected to receive breathing space through a specific route supporting those in mental health crisis treatment.
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Assessment & feedback
Summary accuracy