The Government has published its response to its consultation on Statutory Debt Repayment plans. It had consulted on a proposal for debt advisers to devise repayment plans lasting up to 10 years, which would provide similar legal protections from creditor action as the breathing space scheme. The consultation received many detailed responses, and the government, recognising the challenges of the regime, which is intended to provide a better outcome for those that can afford to repay their debts in full than current options, will not now consult on next steps this year. Instead, it will base further decisions on the outcomes of the Insolvency Service’s review of the personal insolvency framework, which started in July 2022. At this stage, no decisions have been made.
The Government is also considering the responses to its proposals for minor improvements to breathing space.