London Daily

Focus on the big picture.

Annual surge in people taking up debt 'breathing space' relief

Annual surge in people taking up debt 'breathing space' relief

The scheme provides legal safeguards for individuals with financial problems, giving them time to get advice and plan for how they will settle their bills.
The number of people taking "breathing space" from their debt problems has soared by more than a third year-on-year, official data shows.

There were 23,179 registrations for the relief in the first three months of 2023, up 34% from the same period in 2022, according to Insolvency Service figures.

Of this total, 22,770 were standard breathing space registrations and 409 were made for mental health reasons.

The latest statistics come as the rate of inflation eased slightly but still remains above 10%, with food and drink costs at a 45-year high.

The scheme provides legal safeguards for people with problem debt, giving them time to get advice and plan for how they will settle their bills.

It protects people from their creditors for 60 days, with most interest and penalty charges frozen and enforcement action halted.

Because financial problems can be linked to mental health issues, the protections are also available for people receiving crisis treatment.

In these cases, it covers the duration of their care plus a further 30 days.

For the whole of last year, 70,546 registered breathing spaces were recorded, including 69,334 standard and 1,212 mental health registrations.

People seeking the assistance need to speak to a debt adviser first, who will then make the application.

Those registering for breathing space may or may not end up entering a formal insolvency procedure.

The figures, covering England and Wales, showed the number of people going financially insolvent was 2% lower in the first quarter of this year than in the final quarter of 2022.

The 29,017 personal insolvencies registered over the latest three-month period were also 9% lower than the same quarter the previous year.

The Insolvency Service also released company insolvency figures for England and Wales, which showed the number of firms going bust was 18% higher than in the first quarter of 2022 but 4% lower than in the final three months of 2022.

There were 5,747 company insolvencies in total registered in the first quarter of 2023.

Related Articles

London Daily
Chaotic Portugal Win Over Turkey at Euro 2024
Global Headlines: Hajj Heatwave Tragedy, Flynn's Family Enterprise, and Rising Geopolitical Tensions
Political Shifts in France, Legal Battles in the UK, and Public Protests in Israel
UK's Richest Family Convicted for Exploiting Servants
Hollande Declares End to Macron’s Political Ascendancy
Hindujas Appeal Swiss Court's Human Trafficking Verdict
Prince William Celebrates Birthday at Taylor Swift Concert
Singapore to Implement Screen Time Regulations for Children
Hello and welcome back. Here we are with your latest news update from around the world.
Hello and welcome back. Here are today's top stories from around the world, you don't want to miss:
UK PM Sunak and the Election Betting Scandal
Climate Activists Target Taylor Swift's Private Jet in UK
United States Bans Kaspersky Antivirus
US to Supply Taiwan with Suicide Drones Amid Rising Tensions with China
Bodyguard of UK Prime Minister Arrested for Alleged Election Betting
Global Displacement Crisis: Record Numbers in 2023
Muslim Community Leader Criticizes Nigel Farage for Undermining Muslims
Melinda Gates Discusses 'Horrible' Divorce from Bill Gates
Child Obesity Surge in England: A Deep Concern
U.S. Sues Adobe Over Hard-to-Cancel Subscriptions
Deadly Heat Wave Claims Dozens of Lives During Hajj Pilgrimage in Mecca
Here are today's top worldwide stories you don’t want to miss:.
World’s Largest Pilot Union Calls to Eliminate Terms Like ‘Cockpit’ and ‘Manpower’ for Equity
Woman Suing UK Intel Services Denies China Spy Allegations
Iran Sentences Nobel Laureate Narges Mohammadi to 1-Year Prison Term for Propaganda
News roundup
Good day, everyone! We've got some gripping stories for you today, spanning from the Middle East to Europe, and even a touch of Hollywood.
Britain’s Refugee Visa Rules Stranding Children in War Zones
UK Elections Predict ‘Electoral Extinction’ for PM Sunak’s Conservative Party
Italian Activist Ilaria Salis Returns Home After Election to European Parliament
Good morning!
England Faces Serbia in Euro Opener with Defensive Concerns
Dermatologist Warns Against Sunbed Usage
Fake Pro-Reform UK Social Accounts and Their Influence on Elections
UK Man Jailed for Non-Consensual Condom Removal
Reform UK Surpasses Conservatives in Historic Poll
US, Britain, Canada Accuse Russia of Interference in Moldova’s Election
Taylor Swift Fans Create Seismic Activity in Edinburgh
Sunak Aide Under Investigation for Election Bet
Labour Leader Starmer Focuses on Wealth Creation for Upcoming UK Elections
G7 to Use Frozen Russian Assets for $50 Billion Ukraine Aid
Anti-Israel Irish MEP Clare Daly LOST her seat in the EU Election
Johnson & Johnson Settles Talc Safety Claims for $700 Million
EU Urged to Welcome Skilled Russians to Weaken Putin
EU Elections Overview: Far-Right Gains and Major Political Shifts
Israel Rescues Four Hostages from Gaza
Emmanuel Macron Calls for Snap Election
Jordan Bardella: Young Far-Right Leader Poised for Future Political Influence in France
World's Oldest Privately Owned Book Auctioned for $3.8 Million
Animal Rights Activists Deface King Charles' Portrait in Protest