Government defends Breathing Space scheme amid landlord concerns

The government claims the Breathing Space Scheme offers several safeguards to help landlords.

Introduced during the COVID pandemic, the standard scheme offers tenants protection from enforcement action, including eviction, for up to 60 days.

The Mental Health Breathing Space Scheme extends protection for tenants receiving mental health crisis treatment, plus an additional 30 days after treatment ends.

Impact on landlords

In a written parliamentary question, Liberal Democrat MP Joshua Reynolds asked the government about the impact of the “safeguards within the Debt Respite Scheme (Breathing Space) available to creditors, including private landlords, whose debts are subject to a moratorium”.

In response, economic secretary to the Treasury, Rachel Blake, said: “The Breathing Space Scheme was established to support those in problem debt engage with professional debt advice, or to receive crisis treatment for a mental health condition, by providing temporary protections from creditor enforcement action.

“The government recognises that these protections have an impact on creditors, including private landlords, and the scheme therefore includes a number of safeguards to protect creditor rights.

“Creditors may request that a debt adviser reviews a breathing space if they consider that an individual debtor or specific debt does not qualify for the scheme. Creditors also have the right to apply to a court at any time for permission to take enforcement action in relation to a debt included in a breathing space.

“The government keeps the operation of the scheme under review to ensure it is operating effectively.”

Not a payment holiday

On its website, Shelter says the scheme is not the same as a payment holiday and people should continue to pay as much rent as they can.

The government says debtors can only access a breathing space by seeking debt advice from a debt adviser. Anyone who cannot, or is unlikely to be able to, repay their debts can apply to a debt adviser for a standard breathing space.

A breathing space begins the day after the debtor’s details are added to the breathing space register. During this period, the person must work with the debt adviser to find a long-term debt solution and report any changes in their circumstances. The adviser will review the situation after 30 days.