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Breathing space
06 February 2020
At a Glance
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