In last week’s budget the Chancellor announced that The Breathing Space Initiative is being extended from 6 weeks to sixty days which equates to about eight and a half weeks.
This scheme aims to give creditors a period of time free from fees, charges and collections activity while they are seeking debt advice and getting a solution in place before additional charges are introduced. It is hoped that this will reduce the stress that is encountered at this time and enable creditors to better manage their affairs.
This is a very welcome step and has been welcomed by many organisations that support vulnerable consumers especially those people with mental health problems who need more support at this sensitive time.
However, there is a general view that eight and a half weeks is still not sufficient time to allow consumers to get their debt management plans in place.
We at the Vulnerability Registration Service certainly welcome this extension to the Breathing Space Initiative and will be continuing our discussions with the Treasury to review how we can support its implementation next year.