Statutory debt repayment plan explained
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Quick answer: The statutory debt repayment plan is a proposed UK scheme to give breathing space with a single affordable payment plan — legislation has been discussed but check gov.uk for current availability.
England and Wales already have Breathing Space for temporary protection from creditor action. Longer-term statutory plans have been discussed to simplify repaying multiple debts through one affordable payment. This guide explains what exists now and what may change.
Last reviewed:
Read the full debt help guide →Primary source: www.gov.uk/options-for-dealing-with-your-debts
Current protections
Standard Breathing Space stops most interest, fees and enforcement for 60 days while you work with a debt adviser. Mental health crisis Breathing Space lasts for the duration of your treatment plus an additional 30 days.
Creditors must comply with Breathing Space rules. If a creditor ignores the protection, contact the debt adviser administering your scheme so they can follow up on your behalf.
Planned SDRP concept
Policy discussions have suggested a statutory debt repayment plan overseen by an insolvency practitioner, with one affordable payment shared proportionally among all creditors. This is not yet universally available, so check gov.uk for the latest position.
Until any statutory plan launches, debt management plans through charities negotiate informal repayment schedules without court involvement. These remain the main route for people who can afford reduced payments but do not need formal insolvency.
Getting help
Debt advisers assess your income and essential spending using Standard Financial Statements that major creditors accept. This gives a realistic picture of what you can afford before any formal solution is recommended.
Never pay upfront fees to commercial debt management companies for basic advice. FCA-regulated firms cannot charge setup fees for debt management plans in most cases, and free charities offer the same assessment at no cost.
Common questions
Is SDRP the same as an IVA?
No. An IVA is a contractual insolvency arrangement that is available now and is overseen by an insolvency practitioner. The statutory debt repayment plan remains a policy proposal that is still being developed.
Will SDRP affect my credit file?
Any formal debt solution usually records on your credit file for six years. The exact impact of a future statutory plan will depend on the final legislation and how creditors report it.
Can I enter Breathing Space twice?
You can use the standard Breathing Space scheme once every 12 months if you meet the eligibility criteria. Your debt adviser will confirm whether you qualify before applying.