Thank you, Dirprwy Lywydd, and thank you for the opportunity to open the debate seeking Members' approval of the Debt Respite Scheme (Breathing Space Moratorium and Mental Health Crisis Moratorium) (England and Wales) Regulations 2020. These regulations, commonly referred to as 'breathing space', fall outside of the Senedd's legislative competence. However, without the approval of the Senedd, the protections offered through breathing space will not be accessible to people in Wales. We know that life events like unemployment, illness and relationship breakdown are the key triggers for debt problems, and the circumstances we're facing with COVID-19 are increasing debt in households across Wales. When people fall into debt, the consequences can be severe.

But, thankfully, people can recover from debt. What they need is the time to seek professional advice and to understand their options without creditors threatening enforcement action or increasing their debt by adding on interest charges and other fees. This is what breathing space offers. For a 60-day period, people struggling with debt will get legal protection from creditors increasing their debt and from taking enforcement action, giving them the time to get the advice they need to start to bring their debts under control.

The link between poor mental health and debt is well evidenced. Half of all adults in problem debt also have a mental health problem, and I'm pleased people receiving mental health crisis treatment have an easier pathway to the protections offered by breathing space. Their protections will also last for longer than the standard 60 days, allowing people to complete their treatment, and then have the time to get advice and the help to make informed decisions on managing their debt.

Breathing space is the first part of the debt respite scheme. The statutory debt repayment plan is the second part and is expected to be introduced to 2022. As with breathing space, officials will work with policy makers to ensure the statutory debt repayment plan aligns with the needs of the people of Wales and the regulations will be brought before the Senedd for our approval. Diolch.