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 Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA warns on loan notes and mini-bond investment risks

FCA warns on loan notes and mini-bond investment risks

Urges consumers to be wary of high-risk investments

Jenna Brown
clock 20 August 2026 • 2 min read
SVS Securities CEO banned and fined

SVS Securities CEO banned and fined

Demetrios Hadjigeorgiou barred from working in senior management positions

Jenna Brown
clock 20 August 2026 • 2 min read
Suitability rules overhaul: Why firms should engage now, not later

Suitability rules overhaul: Why firms should engage now, not later

'The bigger shift is philosophical, not just structural'

Marjolaine Quirke
clock 19 August 2026 • 3 min read