ALMOST 150 people in Carlisle sought legal protection after struggling with problem debt, new figures show.

In May 2021, the Government launched its Debt Respite Scheme which saw people unable to pay debts become eligible for a 'breathing space', which means that creditors cannot pursue legal action against them while they sort their finances out.

There are two types of breathing space – a "standard" one, which gives legal protection from debt collection for up to 60 days, and one for those undergoing treatment for a mental health crisis.

Data from the Government's Insolvency Service shows 145 people were given a breathing space in Carlisle between May 2021 and April this year.

Breathing spaces can only be granted by an organisation that gives advice and support on debt – such as StepChange, a debt charity responsible for two-thirds of all breathing spaces during the first 12 months of the scheme.

Across England and Wales, nearly 64,000 breathing spaces were granted in the year to the end of April – including more than 1,000 for people undergoing a mental health crisis.

They included 10,111 across the North West.

Sue Anderson, head of media at Stepchange, said while there were "lessons to learn" from the first year of the scheme, it had broadly been a success.

However, she warned that inflation is pushing more people into debt.

"The steep rise in the cost of living has increased the risk of falling into problem debt – more acutely for financially vulnerable households, with StepChange data showing that the cost of living is now the second most commonly cited reason for debt among new clients, up from the sixth most common in 2021."

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