Raluca Covaci sheds light on the Mental Health Crisis Breathing Space (MHCBS) scheme since its management changed hands from Rethink Mental Illness to We Are Group.
Throughout my career in debt advice and quality management, I have seen how the right intervention at the right time can transform a client’s situation. For individuals in acute distress, measures such as Mental Health Crisis Breathing Space can offer not only financial relief but also the space needed to focus on recovery and stability.
Working alongside mental health professionals, creditors, and community organisations, I’ve helped to promote joined-up support that looks beyond numbers and balances to recognise the person behind the debt. These experiences have reinforced a central truth: sustainable financial wellbeing cannot be achieved in isolation. It requires a system where mental health and debt advice are addressed together – with empathy, accountability, and collaboration embedded in every aspect of service delivery.
MHCBS supports people by pausing most creditor action while they receive mental health crisis treatment, providing much-needed relief during a challenging time.
Since January 2025, We Are Group has been managing the scheme, on behalf of the Money and Pensions Service, and we’ve redesigned the application process to make it straightforward and more impactful.
But before I discuss what’s changed, let’s revisit what MHCBS is and who is eligible.
What is MHCBS and who is eligible?
The MHCBS was introduced in 2021 as part of the Government's Debt Respite Scheme, introduced 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 debt advice.
The most common misconception amongst clients is that the MHCBS is a payment holiday. This is not the case; their ongoing liabilities still need to be addressed. The MHCBS offers FCA-accredited debt advice to help clients manage their debts and finances post-crisis treatment.
Unlike the standard Breathing Space scheme, MHCBS is specifically for those in mental health crisis and offers stronger protection as it lasts as long as a person’s mental health crisis treatment, plus an additional 30 days. The standard Breathing Space lasts for 60 days and can only be applied for once a year.
Most crucially, eligibility 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.
Other eligibility criteria include:
- the client must be a resident of England or Wales,
- they must be dealing with problem debt,
- as well as the aforementioned qualifying crisis treatment.
For detailed information about eligibility, visit the government’s Debt respite scheme (breathing space): Guidance on mental health crisis breathing space document, found on Gov.uk.
Who delivers the MHCBS?
We Are Group has been managing the MHCBS on behalf of the Money and Pensions Service (MaPS) since January 2025. Building on the foundations laid by Rethink Mental Illness, we have simplified the application process to make it 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 clients 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 client’s Nominated Point of Contact, as they will need to confirm if the client is still undergoing crisis treatment.
As an organisation, we specialise in managing services that make a social impact. We pride ourselves on delivering impactful services that are both cost-effective and efficient for funders, while empowering service users to live better lives. So, whilst we are a profit-based organisation, we exist to create a world where no one is left behind.
This ethos of combining efficiency with social impact is visible in our successful management of the MHCBS.
But the real success of the MHCBS lies in the new partnerships we’ve formed with specialist organisations. We work closely with two other organisations to ensure clients receive the highest standard of support throughout their MHCBS journey.
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. They are 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, is a trusted name in debt advice. Their team of FCA-accredited advisers completes the eligibility checks and enrols clients in a MHCBS. Although MCHBS clients are not required to engage with debt advice, advisers will provide advice on urgent issues and ineligible debts in a timely manner, and offer further support for when they are ready to receive it, helping clients to prepare for a more secure financial future post-treatment. Toynbee Hall‘s debt advisers also liaise with creditors ensuring they abide by the Debt Respite Scheme regulations (and reporting them to The Insolvency Service if creditors are in breach) and respond to any challenges creditors may make regarding a client’s or debt(s) eligibility for the MHCBS.
As Quality Manager at We Are Group, I oversee compliance of service delivery – in alignment with MaPS standards and internal quality criteria – ensuring that every client has a seamless experience with the scheme and receives accurate and tailored advice leading to good outcomes. My role also involves keeping up to date with case law pertaining to MHCBS and any other regulatory changes to ensure our services reflect those changes.
MHCBS applications must be submitted by the individual themselves or by an authorised person acting on their behalf. Here is a full list of those authorised to submit MHCBS applications:
- The person receiving mental health crisis treatment
- Their carer (who must be receiving Carer’s Allowance)
- Their care co-ordinator
- Their independent mental health advocates or mental capacity advocate
- Their representative (e.g., someone who has Power of Attorney or is a Court of Protection Appointed Deputy)
- An Approved Mental Health Professional
- Mental health nurses
- Social workers
What happens after an application is submitted?
Clients can complete the application form through our online portal. The form requires personal information, details of a Nominated Point of Contact (NPOC), and Approved Mental Health Professional (AMHP) who can provide evidence of the client’s crisis treatment.
Once the application form is completed, it is automatically sent to the AMHP for their signature and final submission.
If a client is enrolled in MHCBS, they benefit from immediate relief, as the MHCBS pauses most creditor actions. An initial response is provided, outlining the next steps and possible outcomes to give clarity and reassurance during this critical time.
Throughout their time in the scheme, clients receive personalised support from compassionate professionals. Each case is treated individually, ensuring a human-centred approach that prioritises the unique needs of the client.
Clients also have the option to receive tailored debt advice to help them manage their finances effectively in the long term.
Our follow-up procedures also provide ongoing assistance. These may include further debt advice, casework for debt resolution, signposting to mental health support, and providing guidance in overcoming financial challenges after the treatment period.
Want to find out more?
For more information about the MHCBS, visit wearegroup.com/mhcbs. If you have any questions, you can email us directly at support@mhcbs.co.uk.
Raluca Covaci
A legal professional and quality manager with experience in the third sector, Raluca is a highly driven individual with a desire to provide high quality customer service, customer outcomes and customer satisfaction in the advice sector. Her roles typically focus on service performance, quality, compliance and customer facing activities. With a long standing experience working in debt advice and mental health Raluca is passionate about high quality communication with clients to ensure a positive experience with any specialist service provision.
