22 January 2025

The Scottish Government has launched a consultation on the Regulations that will govern a new Mental Health Moratorium, which aims to provide financial breathing space for people experiencing mental health issues. This new tool would temporarily halt debt recovery actions, giving people time to focus on their mental health without the added stress of creditor pressures. The consultation seeks views on the Regulations which are currently in draft form, as well as on the detailed implementation of the Moratorium.

Key areas of consideration in the consultation include:

• Eligibility criteria: Who can access the moratorium, based on mental health and debt-related factors.
• Protections for individuals: Restrictions on creditors during the moratorium period, including halting enforcement actions and freezing certain charges.
• Duration and obligations: The length of the moratorium and any obligations for individuals, such as paying ongoing liabilities.
• Processes for creditors and AiB (Accountant in Bankruptcy): How creditors can challenge or comply with the moratorium, and the role of AiB in overseeing its implementation.

Why is This Consultation Happening?

The Mental Health Moratorium is part of the Scottish Government’s broader commitment to social justice and ensuring that Scotland’s most vulnerable people receive the support they need. The consultation seeks input from key stakeholders, including debt advisers, mental health professionals, creditors, and advocacy groups, to ensure the policy is fair, effective, and workable.

At Money Advice Scotland, we see the toll that financial stress takes on mental health every day. This consultation is a significant opportunity to shape a policy that could make a real difference for people facing the dual challenge of mental health crises and financial difficulties.

Our Role in the Consultation

As Scotland’s national membership body for money advice, we’re committed to representing the voices of our members in this process. To ensure our response reflects your expertise and experience, we’ve launched a survey and will be hosting an online discussion forum.

The Survey

Our survey gives an opportunity for you to share your opinions on the consultation’s key questions. By gathering insights from members like you, we can ensure our response highlights the issues that matter most to advisers and their clients. Please fill out our survey here.

The Discussion Forum

Join us for an online forum to discuss the proposals, our draft responses, and your views. This session is your chance to contribute directly to our consultation response and to engage with other members on this important issue.

Date: Thursday 6^th February 2025

Time: 2pm – 4pm

You can sign up for the event here. Please note that this is a members only event- if you would like to become a member of Money Advice Scotland you can find out more here.

Whether you complete our survey, attend the discussion forum, or both, your voice matters. Together, we can ensure the Scottish Government hears from those on the front lines of money advice and debt recovery.

We look forward to hearing from you and working together to make a difference.