Hundreds given help for problem debt in the East Riding, new figures show

Hundreds of people in the East Riding sought legal protection after struggling with problem debt, new figures show.
312 people were given a breathing space in the East Riding of Yorkshire between May 2021 and April this year. Photo: PA Images312 people were given a breathing space in the East Riding of Yorkshire between May 2021 and April this year. Photo: PA Images
312 people were given a breathing space in the East Riding of Yorkshire between May 2021 and April this year. Photo: PA Images

In May 2021, the Government launched its Debt Respite Scheme which saw people unable to pay debts become eligible for a “breathing space”, which means that creditors cannot pursue legal action against them while they sort their finances out.

There are two types of breathing space – a “standard” one, which gives legal protection from debt collection for up to 60 days, and one for those undergoing treatment for a mental health crisis.

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The latter gives protection for the length of their treatment, and for 30 days after.

Data from the Government’s Insolvency Service shows 312 people were given a breathing space in the East Riding of Yorkshire between May 2021 and April this year.

This means 11.1 were started for every 10,000 people in the area.

Breathing spaces can only be granted by an organisation that gives advice and support on debt – such as StepChange, a debt charity responsible for two-thirds of all breathing spaces during the first 12 months of the scheme.

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Sue Anderson, head of media at the charity, said while there were “lessons to learn” from the first year of the scheme, it had broadly been a success. However, she warned that inflation is pushing more people into debt.

Citizen’s Advice, which supports people on a variety of money issues, administered a further 15% of all breathing spaces.

A Treasury spokesperson said: “We are proud of the breathing space scheme which has supported over 63,000 people in problem debt – helping to get their finances back under control.

“We understand that people are struggling with rising prices which is why we have acted to protect the 8 million most vulnerable British families through at least £1,200 of direct payments this year, with additional support for pensioners and those claiming disability benefits.”

If you are suffering from problem debt and need support, visit www.stepchange.org or www.citizensadvice.org.uk.

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