The new 'breathing space' scheme for people in debt: R3 response

04 May 2021

Responding to the introduction today (4 May 2021) of the new 'breathing space' scheme for people in debt, Mark Sands, Chair of the Personal Insolvency Committee at insolvency trade body R3, says:

“The introduction of the breathing space scheme comes not a moment too soon. The pandemic has dealt a body blow to many people's incomes and savings, and this policy could make a real difference in helping individuals to find the best way of resolving their financial situation. 

“In our view, the scheme does a good job of balancing the needs of people in debt with the rights of their creditors, and it has been set up in such a way that the scheme is rightly part of a journey, rather than a destination in and of itself. 

“The breathing space scheme has the potential to help many thousands of people who have well-founded worries about their finances, and who need time and guidance to assess their position, speak to an advisor, and plot a path forwards.

“We hope the scheme gets good pick-up, and that it provides a measure of relief and direction to all who need it.”