Stop and restart deductions from benefits under the Debt Respite Scheme (‘Breathing Space’)
How to notify DWP to stop or restart deductions from benefits for fuel, water or rent arrears when a debtor starts or ends a ‘Breathing Space’.
Applies to England, Scotland and Wales
This guidance is for fuel and water suppliers and landlords who have asked DWP to deduct money from someone’s benefit to repay a debt.
You must let DWP know if you are asked to stop recovering a debt under the Debt Respite Scheme, known as a ‘Breathing Space’.
The scheme gives someone in problem debt the right to legal protections from their creditors.
The Insolvency Service will notify you if someone who owes you money is in a ‘Breathing Space’. When they do this you must stop all action to recover the debt and stop any interest or other charges on the debt.
You cannot make a new application for debt deductions from benefit while a debtor in in a ‘Breathing Space’.
A standard ‘Breathing Space’ can last for up to 60 days. A debtor can only have one standard ‘Breathing Space’ in a 12-month period.
A mental health crisis ‘Breathing Space’ is available if an Approved Mental Health Professional (AMHP) certifies that a person is receiving mental health crisis treatment. A mental health crisis ‘Breathing Space’ lasts for as long as the person is receiving treatment, plus 30 days.
DWP will need to stop debt deductions from:
- income-based Jobseeker’s Allowance
- income-related Employment and Support Allowance
- Income Support
- Pension Credit
Deductions for ongoing fuel charges and water charges (Water Direct) will continue during the ‘Breathing Space’.
You do not need to tell DWP if the debt is being deducted from Universal Credit. This is because Universal Credit deductions are not currently covered by the Debt Respite Scheme.
How to tell DWP a ‘Breathing Space’ has started
Fill in the creditor template listing each debtor in a ‘Breathing Space’. Only fill in the end date of the ‘Breathing Space’ where this is known.
Send the template to DWP as soon as you know that a debtor is in a ‘Breathing Space’.
If deductions are being taken from income-based Jobseeker’s Allowance, income-related Employment and Support Allowance or Income Support, send the template to [email protected]
If deductions are being taken from Pension Credit, send the template to [email protected]
Do not use these email addresses for any other correspondence.
DWP will let you know when deductions have stopped, or contact you if they have any questions.
How to tell DWP a ‘Breathing Space’ has ended
DWP will not automatically restart debt deductions from benefit when the ‘Breathing Space’ ends. This is because the person’s debt position may have changed and deductions for arrears may no longer be appropriate.
To restart debt deductions from benefit when the ‘Breathing Space’ ends, fill in:
- the , including the ‘Breathing Space’ end date
- a new application form for third party deductions for rent and service charges
If you no longer want DWP to take deductions from benefit when the ‘Breathing Space’ ends, fill in the creditor template and include the date the ‘Breathing Space’ ends and date you want deductions to stop.
If the debtor gets income-based Jobseeker’s Allowance or income-related, Employment and Support Allowance or Income Support, send the template and new application, if appropriate, to [email protected]
If the debtor gets Pension Credit, send the template and new application, if appropriate, to [email protected]