Breathing Space Scheme: Consultation Response

Debate between Lord Young of Cookham and Baroness Ford

Wednesday 19th June 2019 Lords Chamber

[Lord Young of Cookham]

On the latter point, the first regulations will be laid towards the end of this year. I will write to the right reverend Prelate about the timetable for the sustainable development plans. Can I pay tribute to the work that the Church has done in this area? There is the Just Finance Foundation, founded by the most reverend Primate the Archbishop of Canterbury, the Lifesavers financial education programme, very active in primary schools, and Christians Against Poverty, a registered debt advice agency. I pay tribute to the work that they do.

The idea is that those who enter into a breathing space will, after a dialogue with the debt advice agency, then have a sustainable debt plan which takes into account the resources that are available and arrives at something which enables them to meet their debts—but over a period ideally not more than seven years. It is designed to ensure that they have enough to meet their obligations, including their ongoing debts. There may be some cases where the income simply is not available to enter a sustainable debt plan, in which case they may be advised for bankruptcy or IVA. The idea is to give a breathing space of 60 days in which a person can come to terms with their financial circumstances and have professional advice about the best way through, enabling them to get their life back on an even keel.

[Baroness Ford (CB)]

My Lords, like other noble Lords I greatly welcome the announcement made today and, in particular, the provisions and support offered to people with mental health difficulties and debt. However, when someone is in a crisis involving their mental health, they are probably at their least able or well-equipped to access the kind of advice that the Minister has described. Can he say whether there are plans in place to train and support health professionals in the NHS—particularly mental health professionals—to give support and advice to those who need to access the breathing space period?

[Lord Young of Cookham]

The noble Baroness makes a very good point. There is a crucial role in this for an approved mental health practitioner, who could be a social worker or a GP with the relevant qualifications. The AMHP can say to the debt advice agency that this person has a debt problem and is unable to go through the whole process of putting together a plan. But they get a buy-in to the next round, in that their debts are frozen, they enter the breathing space and they do not have to enter into a repayment plan until such time as the crisis is over and they are able to do so.

I take on board the noble Baroness’s point that we need to ensure, first, that there are enough approved mental health practitioners; and, secondly, that they know what to do if they meet somebody with a debt problem—to contact one of the debt advice agencies and get the breathing space.