Breathing Space (Debt Respite Scheme)
If you’re a sole trader and you’re receiving financial support from a debt adviser or charity, you may be able to enter Breathing Space. This government scheme gives you a temporary break from creditors, so you have time to focus on your business and make a plan for the future.
What is Breathing Space?
Breathing Space is a government scheme that gives you a short pause on most debts.
- It usually lasts for 60 days
- Most creditors stop enforcement action during this time
- Interest and charges are frozen
- You get the breathing room you need to take advice and plan ahead
Breathing Space doesn’t write off debts. It’s a temporary break, not a cancellation. Once it ends, normal payments resume — but you’ll have had time to work out longer-term solutions.
Who can apply?
You can apply if you:
- Are a sole trader with qualifying business or personal debts
- Are receiving approved financial support (such as government grants or hardship schemes)
- Are finding it difficult to keep up with bills and repayments
- Haven’t had a Breathing Space in the past 12 months
A debt adviser will confirm if you’re eligible and help you apply.
How it works
- Speak to a debt adviser – Breathing Space can only be set up by an authorised adviser.
- Your details are added to the Breathing Space register – creditors, including Ruby Energy, are notified.
- During the 60 days:
- Most creditors put enforcement on hold and freeze fees or interest
- You should keep paying ongoing bills if you can (including current energy use)
- Use the break to review your finances and plan ahead
- After 60 days:
- The temporary break ends and normal terms resume
- You’ll have had time to arrange payment plans or other support with your creditors
Making the most of your Breathing Space
This break is your opportunity to take control of your finances. During the 60 days you should:
- Review your income and outgoings and set a budget
- Get advice from a business or debt adviser
- Keep paying ongoing costs like rent, tax, or energy if possible
- Talk to creditors about longer-term payment options