Breathing space came into force on 4 May 2021 to give people in problem debt a sixty day period to get back on their feet.
The new policy will freeze interest, fees and enforcement for people in problem debt, with further protections for those in mental health crisis treatment. It will see enforcement action from creditors halted and interest frozen for people with problem debt.
We know that tackling debt early is better for higher recoveries, and better for people’s mental health and wellbeing. Nearly 2 in 5 people who’ve been affected by mental health problems have had a drop in income due to the pandemic, so the new rules are timely.
We heard from the Financial Wellness Group about offering free customer debt management solution and what Breathing Space means to them.
Listen back to hear about:
- The debt context: how Covid has affected the nation’s financial resilience
- The need for Breathing Space
- What is Breathing Space?
- Early feedback on Breathing Space implementation
With guest speakers Deborah Ware, Director, Financial Wellness Group and Sebrina McCullough, Head of External Relations, Financial Wellness Group
View the webinar
We certainly haven't seen a lack of engagement from customers so far. Customers are really keen to make steps forward to find out what benefits they're entitled to and what support they can receive to develop their budget.