Extend 'Breathing Space' to support to those in a mental health crisis with problem debt - Cross-party MPs

To provide vital support to those in a mental health crisis with problem debt, MPs Luciana Berger, Norman Lamb and Johnny Mercer have tabled three cross-party amendments to the Financial Guidance and Claims Bill which would extend the Breathing Space scheme.



This afternoon, the Financial Guidance and Claims Bill will come to Report Stage in the House of Commons.

One of the functions of the Financial Guidance and Claims Bill is to pave the way for the creation of a Breathing Space debt respite scheme, following a consultation launched last November. The current proposals would give people who seek debt advice a six week break from further interest, charges and enforcement action on their debt while a repayment plan is put in place, providing an opportunity to get on top of their finances before they spiral out of control.

We welcome this initiative and the positive support it will offer those in problem debt. But it does not go far enough.

New analysis of national data by the Money and Mental Health Policy Institute estimates that 23,000 people in England were struggling in problem debt last year whilst in hospital for their mental health. Thousands more were in debt whilst in the care of a crisis team in the community. In a mental health crisis an individual may experience acute distress or altered reality and their cognitive capacity may fluctuate. People in mental health crises are often too unwell to manage their finances or seek debt advice, and therefore risk missing out on the protections offered by the Breathing Space scheme. They need space too.

Imagine receiving a court summons for debts whilst being in hospital as a result of mental illness, and being discharged to find letters on the doorstep. Imagine being discharged from inpatient care to an eviction notice, or doorstepped by bailiffs. The Money and Mental Health Policy Institute discovered countless instances such as these, and even one individual who attempted to take their own life after contact from bailiffs about escalating debts whilst receiving emergency mental health support. These cases are distressing, but, crucially, they are avoidable.

In order to provide vital support to those in a mental health crisis with problem debt, we have tabled three cross party amendments to the Financial Guidance and Claims Bill, which would extend the Breathing Space scheme to everyone in receipt of NHS mental health crisis services in either an inpatient unit or in the community.

Extending Breathing Space debt respite to those in a mental health crisis would diminish recurrent crises caused by financial difficulties, thus reducing pressure on beds and could secure savings by reducing out of area placements. We must ensure that people receiving medical support for a mental health crisis are safeguarded from financial harm, and given space they need to recover. We hope the Government will support these amendments later today.

Luciana Berger MP is Labour and Co-Operative MP for Liverpool Wavertree

Norman Lamb MP is Liberal Democrat MP for North Norfolk

Johnny Mercer MP is Conservative MP for Plymouth, Moor View