The Statutory Debt Repayment Plan: legislated in 2018, still switched off

The Financial Guidance and Claims Act 2018 created a two-part Debt Respite Scheme. Breathing Space, the 60-day moratorium, has run since May 2021. The Statutory Debt Repayment Plan, which would let people in problem debt repay over a manageable period with interest, charges and enforcement frozen, has never been commenced, and as of mid-2026 no implementation date exists; the plan is parked behind a wider personal insolvency review. Voluntary debt management plans from StepChange and PayPlan carry no legal protection from creditors. DROs, IVAs and bankruptcy serve people whose debts must be written off rather than the millions who could repay if protected.

Four million people live in negative budgets. After 60 days of Breathing Space the protections evaporate and creditors can resume enforcement, undoing recoveries in progress. Most problem debt sits in the space between a two-month moratorium and formal insolvency, and the legal instrument for that space is already on the statute book.

Commence the SDRP regulations, or legislate a successor within the personal insolvency review with a statutory deadline. Fund the debt-advice gateway that administers plans, and give the scheme a creditor-compliance mechanism.

// State-led: Instrument: commencement of SDRP regulations under Financial Guidance and Claims Act 2018, or successor statute.

The plan is already law with interest and enforcement frozen on paper, four million negative-budget households wait, and a live insolvency review keeps commencement parked.