London Daily

Focus on the big picture.
Sunday, Jun 01, 2025

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.
Newsletter

Related Articles

0:00
0:00
Close
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
×