The number of individual insolvencies has reached a 15-year high, according to recent findings.
This statistic, paired with the strong correlation between financial problems and mental health, means that there is a need for the Mental Health Crisis Breathing Space (MHCBS) now more than ever.
What is MHCBS?
MHCBS was introduced in 2021 as part of the government's Debt Respite Scheme, under The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020 – otherwise abbreviated to DRS Regs 2020.
The scheme offers protection to individuals experiencing a mental health crisis by:
- Temporarily pausing most debt collection and enforcement actions.
- Freezing interest and fees on qualifying debts.
- Providing access to Financial Conduct Authority (FCA) accredited debt advice.
Who is eligible?
Unlike the standard Breathing Space scheme, MHCBS is specifically for those in mental health crisis. It offers stronger protection as it lasts as long as a person’s mental health crisis treatment, plus an additional 30 days. Whereas standard Breathing Space lasts for 60 days and can only be applied for once a year.
Eligibility for the scheme hinges on a client’s mental health treatment being assessed by an Approved Mental Health Professional (AMHP) and confirmed to be meeting the statutory definition of receiving mental health crisis treatment. This ensures the scheme remains focused on those in urgent need of both mental health and financial support.
According to the definition, a person is receiving mental health crisis treatment if they meet one of the following criteria:
- They are detained for assessment or treatment under the Mental Health Act 1983.
- They have been removed to a Place of Safety under that Act.
- They are receiving crisis, emergency or acute care or treatment in any setting from a specialist mental health service (i.e., crisis treatment from a crisis home treatment team, liaison mental health team, community mental health team, or any other specialist mental health crisis service) for a mental disorder of a serious nature.
Other eligibility criteria for MHCBS includes:
- The client must be a resident of England or Wales.
- They must be dealing with problem debt.
- They must qualify for the aforementioned crisis treatment.
Who delivers MHCBS?
We Are Group is the lead delivery partner of the MHCBS, supporting access and coordination of the service. We have been managing MHCBS on behalf of the Money and Pensions Service since January 2025. Building on the foundations laid by Rethink Mental Illness prior to this, we have simplified the application process to make it even more efficient and impactful.
Our new online application portal has digitised the HM Treasury form – a form required to be completed before someone can apply for MHCBS. This has enabled people, or their nominated contacts, to submit applications swiftly, ensuring quicker access to the scheme and its vital benefits. We have also automated the essential interval checks that are sent to a person’s Nominated Point of Contact for them to confirm if they are still undergoing crisis treatment.
Our mental health support partner, The Kaleidoscope Plus Group, is a renowned charity providing assistance to thousands of individuals across the UK. Their specially trained mental health workers help our customer service team handle sensitive enquiries with compassion and care.
We have also partnered with Christians Against Poverty to provide free debt help, financial education, and support to tackle the root causes of poverty. They have formed part of our quality assurance process to ensure that we are delivering a holistic, high-quality service at all times and across the whole partnership.
Toynbee Hall, established in 1884, works alongside people facing poverty and injustice to provide expert debt advice. Their team of FCA-accredited advisers completes the eligibility checks and enrols people in MHCBS. Although MCHBS clients are not required to engage with debt advice, advisers will provide advice on urgent issues and ineligible debts and offer further support for when they are ready to receive it, helping them to prepare for a more secure financial future post-treatment.
On our website, you can find a link to the application portal for the MHCBS alongside an extensive frequently asked questions section. We also host monthly open access webinars for mental health professionals and AMHPs to learn more about the scheme.
The MHCBS can have a huge impact on the financial and mental wellbeing of people who enter the service. Together, we can make a real difference in the lives of those affected by mental health conditions and problem debt.
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