Govt reveals 'breathing space' plans for those with problem debt

‘Time to seek advice’

Julian Marr
clock • 3 min read

The government has unveiled plans to give those struggling most with money worries a period of 'breathing space' that would allow them time to seek financial advice on how to manage and relieve their debt burden.

HM Treasury announced this morning the government was seeking views with a view to developing a way to provide a period of up to six weeks that would be free from further interest, charges and enforcement action. "Although many people can and do use credit successfully to manage their personal finances, for the minority who get into difficulties this government wants to offer more support," the statement said. "Problem debt, where people are falling behind on their financial repayments or see their debt as a heavy burden, affects millions of people in the UK. A six weeks' grace period...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

FCA logs 210 Consumer Duty whistleblower complaints in Q1

FCA logs 210 Consumer Duty whistleblower complaints in Q1

265 cases closed between January and March

Michael Nelson
clock 11 May 2026 • 2 min read
FCA to introduce multi-firm review for bereavement processes

FCA to introduce multi-firm review for bereavement processes

Review expected to launch this year

Sophia Panayi
clock 08 May 2026 • 2 min read
FCA to investigate poor claims management practices

FCA to investigate poor claims management practices

Looking into CMCs and law firms

Jenna Brown
clock 06 May 2026 • 3 min read