Breathing space rate highest for people aged 25-44

The government has published breathing spaces data which shows breathing spaces rates were highest for people aged 25-44 (one in 445 of those aged 25-34 and one in 440 of those aged 35-44), and lowest for those aged 65 and over.

In the first year of the support, there were 63,864 breathing spaces registered. One for every 736 adults, and a rate of 13.6 people per 10,000.

Three quarters of those who entered the arrangements were aged 25-54 – despite the fact they only make up half the adult population. The North East had the highest breathing spaces rate at one in 559 adults. London had the lowest rate, at one in 1,025 adults.

The age distribution was similar to insolvency rates, although insolvency rates are higher with Mental health breathing spaces make up less than 2% of the total number of breathing spaces.

The breathing space measures are available to anyone with problem debt. They provide legal protection from people you owe money to for 60 days.

Commenting on the data, Sarah Coles, Senior Personal Finance Analyst at Hargreaves Lansdown said “The squeezed middle are facing horrible pressure from all sides. It means they’ve been more likely to seize hold of breathing spaces over the past year, and take the opportunity to come up for air.”

“People aged 35-44 are most likely to have used them. At this stage in life, there’s a reasonable chance you have a family stretching your finances to breaking point, including the risk of huge childcare bills or a lower income as one parent stops working full time for a period. At the same time, you may have the pressure of a large mortgage or other debts pushing your monthly expenses even higher. When you add in rising prices that are making it even harder for all of us to make ends meet, it’s hardly surprising that so many people need help.”

“Those aged 25-44 are more than twice as likely to use breathing spaces as those aged 18-24, and nine times more likely than those aged 65 and over. Breathing spaces are put in place by debt counsellors, so if you’re struggling to manage your borrowing, a debt charity should be your first port of call. StepChange puts around two thirds of these arrangements in place, while Citizens Advice is responsible for around one in seven, so these are reasonable places to start. They can help you understand your position, and your options, so you can find a way through. Struggling with borrowing is always incredibly stressful, but you don’t have to do it alone.”