Rent arrears and Breathing Space: protecting yourself from escalating debt

If you owe rent and other debts, you may be worried about creditors and landlords taking action while you try to sort things out. The Breathing Space scheme (formally called the Debt Respite Scheme) gives people in problem debt a temporary pause on enforcement action. Below we explain how it works for tenants in rent arrears.

What is Breathing Space?

Breathing Space is a government scheme, introduced in May 2021, that gives people in serious debt a period of legal protection while they get debt advice and work toward a solution. During Breathing Space, most creditors cannot take enforcement action against you, add interest, or apply charges.

There are two types:

• Standard Breathing Space: lasts 60 days. Available to anyone with problem debt.
• Mental Health Crisis Breathing Space: lasts as long as your mental health crisis treatment, plus 30 days. Available to people receiving mental health crisis care.

Does Breathing Space protect against rent arrears?

Rent arrears can be included in a Breathing Space application. This means that during the 60-day period, your landlord should not take enforcement action over those arrears, for example, they should not issue court proceedings based on those arrears while Breathing Space is in place.

However, Breathing Space does not stop rent becoming due during the period, you must continue to pay your current rent. It protects arrears that already existed when the Breathing Space began.

Does Breathing Space stop an eviction?

Breathing Space does not automatically stop possession proceedings. A landlord can still serve a section 21 notice or a section 8 notice during Breathing Space. However, Breathing Space guidance does affect what creditors can do in relation to the protected debts, and court proceedings for those specific debts should be paused.

The position around possession proceedings is complex. If you are facing eviction and want to understand how Breathing Space interacts with your situation, get specialist debt advice.

How do I apply for Breathing Space?

You must apply through an approved debt adviser, Breathing Space cannot be self-applied. Debt advisers who can apply include:

• Citizens Advice
• StepChange (a free debt charity)
• Money Advice Service
• Local money advice services

The adviser assesses your situation and, if appropriate, applies to the Insolvency Service on your behalf. The scheme starts when the application is approved.

What debts are covered?

Most consumer debts can be included, including rent arrears, council tax, utility debts, and credit cards. Some debts are excluded, including court fines, child maintenance, and student loans.

What happens after Breathing Space ends?

The 60 days gives you time to get proper debt advice and start a debt solution, such as a debt management plan, Individual Voluntary Arrangement (IVA), or Debt Relief Order. If you have not sorted the underlying problem by the end of the period, your creditors can resume normal action.

When should I contact Support for Tenants?

If your home has disrepair and you are struggling financially partly because of the poor condition of the property, call us. A disrepair compensation payment may help your financial situation.

Call us on 0800 030 4669. No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.

Sources

• Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 (legislation.gov.uk)