Vulnerable people who are struggling under the weight of problem debt will be offered respite from debt collectors under a new Breathing Space scheme.
The long-discussed plan will see those who find themselves in mental health crisis given 60 days where they will be safe from enforcement action from creditors while interest payments will be frozen to help them sort out their financial situation.
Problem debt damages lives. Our new Breathing Space scheme will help by giving people who need it the time and space to get their finances under control. Those in a mental health crisis will also receive protection while in treatment.
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— HM Treasury (@hmtreasury) June 19, 2019
The scheme will be introduced in 2021 with the Treasury promising that it will cover a wide range of debts, including local and central government debts, such as council tax arrears, personal tax debts and benefit overpayments
People receiving NHS treatment for mental health crisis will not need to seek debt advice during the 60-day period too, the government has government.
“Problem debt can have a devastating impact of people’s lives, putting a huge burden on individuals which can lead to family breakdown, stress and mental health issues,” said City Minister John Glen.