The Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020

• (b) provides confirmation that the debtor has stopped receiving mental health crisis treatment in accordance with regulation 33.

• (4) Where a debt advice provider receives a notification or confirmation under paragraph (3), the debt advice provider must, by the end of the following business day, notify the Secretary of State of the date on which the debtor stopped receiving mental health crisis treatment.

• (5) Where a mental health crisis moratorium ends in accordance with paragraph (2)(b), the debt advice provider must, by the end of the following business day, notify the Secretary of State that the moratorium has ended.

• (6) Where the Secretary of State receives a notification under paragraphs (4) or (5), the Secretary of State must, by the end of the following business day—

• (a) cause an entry to be made on the register, and

• (b) send a notification to each creditor and agent who received notification of a mental health crisis moratorium under this Part.

• (7) Paragraph (6) is subject to regulation 38.

Request by a debt advice provider for information about a debtor’s receipt of mental health crisis treatment

33

• (1) Subject to paragraph (2), a debt advice provider must, before the end of the period of 30 days beginning with the day on which the moratorium started, request from a debtor’s nominated point of contact—

• (a) confirmation of whether the debtor is still receiving mental health crisis treatment, and

• (b) if the debtor is no longer receiving mental health crisis treatment, confirmation of the date on which the treatment ended.

• (2) The debt advice provider must not make the request to a nominated point of contact under paragraph (1) in the period of 20 days beginning with the day on which the moratorium started.

• (3) Having made a request under paragraph (1) and subject to paragraph (4), a debt advice provider must then request from the nominated point of contact the confirmation specified in paragraph (1) every 20 to 30 days beginning with the day on which the last request was made.

• (4) If a moratorium ends in accordance with regulation 32(2)(b) because a debt advice provider has not received a response to a request made under this regulation, then the debt advice provider is not required to make further requests under paragraph (3).

Cancellation of mental health crisis moratorium

34

• (1) Subject to paragraph (2), a debt advice provider must cancel a mental health crisis moratorium if—

• (a) the debt advice provider considers that the evidence from an approved mental health professional referred to in regulation 29(2)(b) contains inaccurate, misleading or fraudulent information, or

• (b) the debtor requests that the debt advice provider cancels the moratorium.

• (2) A debt advice provider is not required to cancel a mental health crisis moratorium if the debtor’s personal circumstances would make the cancellation unfair or unreasonable.

• (3) Paragraph (2) does not apply in circumstances where the debtor requests that the debt advice provider cancels the mental health crisis moratorium in accordance with paragraph (1).

• (4) In order to cancel a mental health crisis moratorium, a debt advice provider must—

• (a) consult the debtor prior to doing so to the extent that the debt advice provider is able to do so, and

• (b) notify the Secretary of State and the debtor of the cancellation.

• (5) Where the Secretary of State receives a notification under paragraph (4)(b), the Secretary of State must, by the end of the following business day—

• (a) cause an entry to be made on the register, and

• (b) send a notification of the cancellation of the moratorium to each creditor and agent in respect of whom the cancellation takes effect.

• (6) Paragraph (5) is subject to regulation 38.

• (7) The cancellation takes effect on the day following the day on which the Secretary of State causes an entry to be made on the register in accordance with paragraph (5)(a).

• (8) A notification sent to a creditor or agent in accordance with paragraph (5)(b) must—

• (a) state the reason for the cancellation, and

• (b) specify the date on which the cancellation takes effect.

PART 4 — Debt respite scheme administration

Electronic system maintained by the Secretary of State

35

• (1) The Secretary of State must maintain an electronic system for the purpose of—

• (a) giving and receiving communications and notifications in connection with moratoria, and

• (b) maintaining a register of matters relating to moratoria.

• (2) The Secretary of State may send and receive communications in connection with moratoria by means of the electronic system where the Secretary of State considers it appropriate to do so.

• (3) The following persons are entitled to information contained on the electronic system that concerns or is relevant to a debtor—

• (a) the Secretary of State,

• (b) the debt advice provider who initiated a moratorium on behalf of the debtor, and

• (c) the debt advice provider to whom the debtor has been referred since the start of the moratorium.

• (4) The following persons are entitled to information contained on the register that concerns or is relevant to a debtor—

• (a) the debtor,

• (b) the Secretary of State,

• (c) any debt advice provider, and

• (d) those creditors who have received notification of a moratorium relating to the debtor under these Regulations.

• (5) A creditor is not entitled to information contained on the register or otherwise held by the Secretary of State about—

• (a) any other creditor of the debtor,

• (b) any moratorium debt owed by the debtor to any other creditor, or

• (c) the debtor’s usual residential address where regulation 38 applies.

• (6) The Secretary of State must delete from the register all information concerning a moratorium where fifteen months have elapsed from the date on which the moratorium ended or was cancelled under these Regulations.

Information about a debtor held on the register

36

• (1) The register maintained by the Secretary of State in accordance with regulation 35(1)(b) must include the following information relating to a moratorium—

• (a) information provided by a debt advice provider under these Regulations concerning—

• (i) the identification details of the debtor to whom the moratorium relates, including the debtor’s full name, date of birth and usual residential address,

• (ii) the trading name or names and address of any business carried on by the debtor,

• (b) the date on which the moratorium started, and

• (c) where a moratorium has ended, the date on which the moratorium ended or was cancelled in accordance with these Regulations.

• (2) This regulation is subject to regulation 38.

Notifications provided to and by the Secretary of State

37

• (1) Any information provided by a debt advice provider to the Secretary of State under these Regulations must be given by means of the electronic system maintained by the Secretary of State in accordance with regulation 35(1).

• (2) Any notification by the Secretary of State to a person under these Regulations must be given by one of the following methods—

• (a) transmitting it by means of electronic communication,

• (b) leaving it at the person’s address, or

• (c) posting it to that address.

• (3) Paragraphs (1) and (2) are subject to regulation 38.

• (4) Unless the contrary is shown a notification will be deemed to have been received on the following days—

• (a) on the day the electronic communication was sent by the Secretary of State,

• (b) on the day that the notification was left at the person’s address, or

• (c) at the end of the period of four business days beginning with the day on which the notification was posted by the Secretary of State.

• (5) The Secretary of State may provide notification by means of electronic communication if the person to whom it has to be provided—

• (a) has indicated to the debt advice provider or the Secretary of State (and has not withdrawn the indication) that they are willing to receive notification by those means, and

• (b) has provided, to the debt advice provider or the Secretary of State for this purpose, an e-mail address or other electronic identification.

• (6) An e-mail address or other electronic identification provided to the debt advice provider or the Secretary of State for receiving notifications is sufficient indication for the purpose of paragraph (5)(a).

• (7) In this regulation “address” means the registered office, registered principle address or any address provided to the debt advice provider or the Secretary of State for receiving notifications.

Non-disclosure of a debtor’s usual residential address

38

• (1) In the circumstances specified in this regulation, the Secretary of State must not include a debtor’s usual residential address—

• (a) in any entry made on the register under these Regulations relating to the debtor that is or would be available to creditors, or

• (b) in any notification sent to creditors or agents under these Regulations.

• (2) A debtor, or the person applying for a moratorium on the debtor’s behalf, may make an application to a debt advice provider under this regulation for non-disclosure of the debtor’s usual residential address.

• (3) An application for non-disclosure of a debtor’s usual residential address must contain—

• (a) a statement of the grounds on which the application is made,

• (b) evidence which supports the statement of the grounds on which the application is made.

• (4) The grounds for non-disclosure of a debtor’s usual residential address are that disclosure of the debtor’s usual residential address might reasonably be expected to lead to violence against the debtor or against a person who normally resides with the debtor as a member of the debtor’s family.

• (5) A debt advice provider must consider any application for non-disclosure of a debtor’s usual residential address and determine whether the address should be disclosed.

• (6) Within 7 days beginning with the day on which a determination by a debt advice provider under paragraph (5) is made, the debt advice provider must notify the outcome of the determination to the debtor or the person who made an application for a moratorium on the debtor’s behalf.

• (7) If a debt advice provider determines that the grounds specified in paragraph (4) apply, when providing information to the Secretary of State in accordance with these Regulations, the debt advice provider must notify the Secretary of State that the debtor’s usual residential address must not be included in—

• (a) any entry made on the register under these Regulations relating to the debtor that is or would be available to creditors, or

• (b) any notification sent to creditors or agents under these Regulations.

• (8) Where an application under this regulation is unsuccessful, a notification under paragraph (6) must inform the debtor, or the person applying for a moratorium on the debtor’s behalf, of their right to appeal to the county court under paragraph (9).

• (9) Where an application under this regulation is unsuccessful, a debtor, or the person applying for a moratorium on the debtor’s behalf, may appeal to the county court against the determination on the grounds specified in paragraph (4) before the end of the period of 28 days beginning with the day on which the debt advice provider notified the outcome of the determination under paragraph (6).

• (10) Where an application is made to a debt advice provider under this regulation, the debt advice provider may not initiate a moratorium under these Regulations until the earliest of—

• (a) the day on which the debt advice provider determines that the address should not be disclosed,

• (b) where the application is unsuccessful but no appeal proceedings are brought under paragraph (9), the end of the period of 28 days beginning with the day on which the debt advice provider notified the outcome of the determination under paragraph (6), or

• (c) the conclusion of any appeal proceedings relating to the application under this regulation.

Electronic system malfunction

39

• (1) In the event of any malfunction or error in the operation of the electronic system, the Secretary of State must inform debt advice providers that information, communications and notifications may be provided under these Regulations to the Secretary of State in such a form as the Secretary of State will specify.

• (2) In the event of any malfunction or error in the operation of the electronic system, where the Secretary of State is required to send notifications under these Regulations, the Secretary of State is required to send the notifications as soon as is reasonably possible.

PART 5 — Supplemental

Review

40

• (1) The Treasury must from time to time—

• (a) carry out a review of the regulatory provision contained in these Regulations, and

• (b) publish a report setting out the conclusions of the review.

• (2) The first report must be published before 4 May 2026.

• (3) Subsequent reports must be published at intervals not exceeding 5 years.

• (4) Section 30(4) of the Small Business, Enterprise and Employment Act 2015[^f00072] requires that a report published under this regulation must, in particular—

• (a) set out the objectives intended to be achieved by the regulatory provision referred to in paragraph (1)(a),

• (b) assess the extent to which those objectives are achieved,

• (c) assess whether those objectives remain appropriate, and

• (d) if those objectives remain appropriate, assess the extent to which they could be achieved in another way which involves less onerous regulatory provision.

• (5) In this regulation, “regulatory provision” has the same meaning as in sections 28 to 32 of the Small Business, Enterprise and Employment Act 2015 (see section 32 of that Act).

Signed

James Morris — Michael Tomlinson — Two of the Lords Commissioners of Her Majesty’s Treasury — 17th November 2020

Explanatory note

(This note is not part of the Regulations)

EXPLANATORY NOTE

These Regulations establish a debt respite scheme.

These Regulations make provision for two types of moratorium available to eligible debtors domiciled or ordinarily resident in England or Wales, namely a breathing space moratorium and a mental health crisis moratorium.

Part 1 makes provision relevant to any moratorium under these Regulations, including the effect of a moratorium and the rights of creditors to request a review of a moratorium and to apply to the county court to cancel the moratorium.

Parts 2 and 3 make provision concerning a breathing space moratorium and a mental health crisis moratorium respectively.

Part 4 provides for the administration of the debt respite scheme by the Secretary of State.

A full impact assessment of the effect that this instrument will have on the costs of business, the voluntary sector and the public sector is available from HM Treasury, 1 Horse Guards Road, London SW1A 2HQ and is published alongside this instrument at www.legislation.gov.uk.

Footnotes

[^f00001]: In accordance with section 26(2) of the Financial Guidance and Claims Act 2018, the reference to the Secretary of State in section 7(2) of that Act is to be read as a reference to the Secretary of State or the Treasury.

[^f00002]: 2018 c. 10.

[^f00003]: 2016 anaw 1.

[^f00004]: 2005 c. 9.

[^f00005]: 1983 c. 20. Section 114 was substituted by the Mental Health Act 2007 (c. 20), section 18.

[^f00006]: 1971 c. 80.

[^f00007]: 1986 c. 45.

[^f00008]: 1983 c. 20. Section 118(1) was substituted by the Mental Health Act 2007 (c. 12), Schedule 2, paragraph 9.

[^f00009]: 2010 nawm 7.

[^f00010]: 1986 c. 45. Part 7A was amended by the Tribunals, Courts and Enforcement Act 2007 (c. 15), Schedule 17, paragraph 1.

[^f00011]: 2007 c. 15.

[^f00012]: 2003 c. 39.

[^f00013]: 2000 c. 8.

[^f00014]: S.I. 2002/253. Article 5(1) was amended by S.I. 2018/838, Schedule 1, paragraphs 1 and 4(a).

[^f00015]: 2006 c. 42.

[^f00016]: 1972 c. 70. Section 20 was amended by the Local Government (Wales) Act 1994 (c. 19), section 1(1).

[^f00017]: 2016 anaw 1. Section 7 is not yet in force.

[^f00018]: 2017 c. 27.

[^f00019]: 2017 c. 16.

[^f00020]: 2016 anaw 2.

[^f00021]: 2012 c. 5.

[^f00022]: S.I. 2001/544. Article 39E was inserted by S.I. 2013/1881, article 5.

[^f00023]: 1986 c. 32. Section 1 was repealed by the Drug Trafficking Act 1994 (c.37), Schedule 3, paragraph 1 but saved by the Drug Trafficking Act 1994 (c. 37), Schedule 2, paragraph 2.

[^f00024]: 1994 c. 37.

[^f00025]: 1994 c. 37. Section 2 was repealed by the Proceeds of Crime Act 2002 (c. 29), Schedule 12, paragraph 1 but saved by S.I. 2003/333, articles 10(1)(e) and 13(b).

[^f00026]: 2002 c. 29.

[^f00027]: 1987 c. 41. Section 1 was repealed by the Criminal Procedure (Consequential Provisions) (Scotland) Act 1995 (c. 40), Schedule 5, paragraph 1 but saved by Schedule 3 to that Act.

[^f00028]: 1995 c. 40.

[^f00029]: 1988 c. 33. Section 71 was repealed by the Proceeds of Crime Act 2002 (c. 29), Schedule 12, paragraph 1 but saved by S.I. 2003/333, articles 10(1)(a) and 13(a).

[^f00030]: 1991 c. 48. “maintenance calculation” was substituted for “maintenance assessment” by section 1(2) of the Child Support, Pensions and Social Security Act 2000 (c. 19) in relation to certain cases in accordance with S.I. 2003/192.

[^f00031]: 1992 c. 4.

[^f00032]: 1987 c. 43.

[^f00033]: S.I. 2013/383.

[^f00034]: S.I. 1992/613. Regulation 23 was amended by S.I. 1994/505, regulation.3 and S.I. 1997/393.

[^f00035]: S.I. 1989/1058. Regulation 8 was amended by S.I. 1992/1512, S.I. 1993/616, S.I. 2010/1656, S.I. 2010/2222, S.I. 2011/1665, and S.I. 2012/24.

[^f00036]: 1986 c. 44. Paragraph 9 of Schedule 2B was inserted by the Gas Act 1995 (c. 45), Schedule 2 and amended by the Utilities Act 2000 (c. 27), Schedule 6, Part 1, paragraph 2(1) subject to transitional provisions in S.I. 2001/3266, articles 3 to 20.

[^f00037]: 1989 c. 29. Paragraph 4 of Schedule 6 was substituted by the Utilities Act 2000 (c. 27), Schedule 4, paragraph 1 subject to transitional provisions in S.I. 2001/3266, articles 3 to 20.

[^f00038]: 1984 c. 42.

[^f00039]: 1985 c. 23. Section 21A was inserted by the Criminal Justice and Courts Act 2015 (c. 2), section 54(1).

[^f00040]: 1994 c. 23.

[^f00041]: 2006 c. 46.

[^f00042]: 1998 c. 30.

[^f00043]: 1990 c. 6.

[^f00044]: 1986 c. 44. Schedule 2B was inserted by the Gas Act 1995 (c. 45), Schedule 2.

[^f00045]: 1989 c. 29.

[^f00046]: 1988 c. 50.

[^f00047]: 2016 anaw 1. Sections 157 is not yet in force.

[^f00048]: 2016 anaw 1. Section 181 is not yet in force.

[^f00049]: 2016 anaw 1. Section 187 is not yet in force.

[^f00050]: S.I. 1989/1058. Regulation 16 was amended by S.I. 1992/474, regulation 3(2)(a), S.I. 1993/616, Schedule 2(2), paragraph 1, S.I. 1998/3089, regulation 5(1) and S.I. 2014/600, Schedule 1(1), paragraph 2(1)(d).

[^f00051]: S.I. 1992/613. Regulation 47 was amended by S.I. 1994/505, regulation 6, S.I. 2014/600, Schedule (1), paragraph 3(e) and S.I. 2019/220, regulation 2(2).

[^f00052]: S.I. 1987/1968.

[^f00053]: 1979 c. 53.

[^f00054]: 1971 c. 32.

[^f00055]: S.I. 1988/664. Regulation 29A was inserted by S.I. 2013/384, article 31(9).

[^f00056]: 1992 c. 5. Section 75(1) was amended by the Social Security Administration (Fraud) Act 1997 (c. 47). Part 3 was amended by the Welfare Reform Act 2012 (c. 5) but some of those amendments are not yet in force.

[^f00057]: S.I. 2013/384. Part 6 was amended by S.I. 2015/499.

[^f00058]: S.I. 2013/380. Regulation 60 was amended by S.I. 2017/725, Schedule 5(1), paragraph 8(b) subject to transitional provisions in regulations 19, 19A and 20 of that instrument.

[^f00059]: 1995 c. 18.

[^f00060]: 2007 c. 5.

[^f00061]: 1980 c. 58.

[^f00062]: 1974 c. 39.

[^f00063]: 2000 c. 8. Section 137A was substituted by section 24 of the Financial Services Act 2012 (c. 21), section 24(1) and amended by S.I. 2018/1115, regulation 7(6).

[^f00064]: 2018 c. 12. Section 3(9) is amended by S.I. 2019/419, Schedule 2, paragraph 4(3) but that amendment is not yet in force.

[^f00065]: 1983 c. 20. Section 130A was inserted by the Mental Health Act 2007 (c. 12), section 30(2) and amended by the Mental Health Act (Wales) Measure 2010 (nawm 7), Schedule 1, paragraph 2 and the Health and Social Care Act 2012 (c. 7), section 43(1). Section 130E was inserted by the Mental Health Act (Wales) Measure 2010 (nawm 7), section 31.

[^f00066]: 2005 c. 9. Section 35(1) was amended by the Health and Social Care Act 2012 (c. 7), Schedule 5, paragraph 134(a) and the Mental Health Act 2007 (c. 12), Schedule 9, paragraph 3. Section 35(1) is also amended by the Mental Capacity (Amendment) Act 2019 (c. 18), Schedule 2(1), paragraph 3 but those amendments are not yet in force.

[^f00067]: 2005 c. 9. Schedule AA1 is inserted by the Mental Capacity (Amendment) Act 2019 (c. 18), Schedule 1 but that insertion is not yet in force.

[^f00068]: 2005 c. 9. Schedule AA1 is inserted by the Mental Capacity (Amendment) Act 2019 (c. 18), Schedule 1 but that insertion is not yet in force.

[^f00069]: S.I. 2013/376. Regulation 29 was amended by S.I. 2015/1754, regulation 13 and S.I. 2017/204, regulation 4(6) subject to transitional and savings provisions in Schedule 2(2) of that instrument.

[^f00070]: 2005 c. 9. Schedule A1 was inserted by the Mental Health Act 2007 (c. 12), Schedule 7, paragraph 1. Schedule A1 is also repealed by the Mental Capacity (Amendment) Act 2019 (c. 18), Schedule 2(1), paragraph 2(c) but that repeal is not yet in force.

[^f00071]: 2019 c. 18. This Act is not yet in force.

[^f00072]: 2015 c. 26.