Debt Relief With a Long-Term Illness: UK Options (2026)

By Hamid Ali, Founder of DebtShift · Updated October 14, 2026 · United Kingdom

Your income drops the day your health does, but the direct debits carry on taking exactly what they took last month.

Short answer: If illness has cut your income, get free debt advice before you stop paying anything. Depending on your situation, you may qualify for Breathing Space (up to 60 days), a Debt Relief Order (if your debts are under £50,000 and you have almost no spare income) or a repayment plan. Statutory Sick Pay is capped at £123.25 a week, so check what else you can claim.

Based on GOV.UK pages on Statutory Sick Pay, Debt Relief Orders and Breathing Space. Rates and limits change, so confirm them with a free adviser.

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The income gap

GOV.UK says Statutory Sick Pay is up to £123.25 a week, paid by your employer for up to 28 weeks, and your employer can pay more under a company scheme (GOV.UK). If your bills were built on a full wage, that gap is where the arrears start. Check Universal Credit and debt for what else may be available, and ask an adviser to check you are claiming everything.

Your options, from lightest to heaviest

Talk to creditors and ask for time. Put the illness in writing, with evidence if you can.
Breathing Space: up to 60 days, freezing most interest and charges and pausing most enforcement. You must keep paying ongoing bills, and it is arranged through a debt adviser (GOV.UK guidance).
Mental Health Crisis Breathing Space: lasts as long as crisis treatment continues plus 30 days, and only an Approved Mental Health Professional can certify the treatment (GOV.UK guidance).
Debt Relief Order (England and Wales): 12 months, no fee. Debts under £50,000, under £75 a month spare income, under £2,000 assets (GOV.UK). The £90 fee was removed on 6 April 2024 and the debt and vehicle limits rose on 28 June 2024 (GOV.UK).
A longer route such as a repayment plan, if your adviser thinks your income will recover. Read debt relief order and compare with the other routes.

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If you cannot manage the phone calls

A carer, care co-ordinator or social worker can ask a debt adviser to act for you in a mental health crisis, and in that case you do not have to engage with the advice yourself (GOV.UK guidance). Free advice is available from StepChange on 0800 138 1111, and you do not need to pay anyone to arrange a DRO or Breathing Space.

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Is Breathing Space a payment holiday?

No. Standard Breathing Space lasts up to 60 days and freezes most interest and charges, but you must keep paying ongoing bills such as rent (GOV.UK guidance). Read Breathing Space in full.

Who can say I am in mental health crisis treatment?

Only an Approved Mental Health Professional can certify it. GPs and other doctors cannot, although they can refer you to one (GOV.UK guidance). Your carer or care co-ordinator can ask a debt adviser to act.

Do I have to be well enough to deal with this myself?

Not always. In a mental health crisis Breathing Space, you are not required to engage with debt advice. A nominated point of contact must deal with the adviser instead (GOV.UK guidance). See debt and mental health.

Can I get a Debt Relief Order if I cannot work?

Possibly. The limits are debts under £50,000, spare income under £75 a month, assets under £2,000 and no vehicle worth £4,000 or more, and you cannot own your home (GOV.UK). You must apply through an approved debt adviser. Try the bankruptcy and DRO checker first.

What happens to my credit file with a DRO?

GOV.UK says a DRO stays on your credit record for 6 years and is listed on the Individual Insolvency Register until 3 months after it ends (GOV.UK).

What if the letters keep coming?

Contact your creditors, tell them about your illness and ask for time. If collectors are being unfair, check what they may and may not do, and read what happens if you stop paying before you stop anything.

Disclaimer: DebtShift is an educational platform operated by H Ali Logistics Ltd, which is not authorised or regulated by the Financial Conduct Authority (FCA). This article is general education, not financial or legal advice. For free, impartial debt advice, contact StepChange on 0800 138 1111.

Sources

Last reviewed October 2026