People in mental health crisis missing out on debt relief

Thousands of people in mental health crisis and in debt are missing out on financial support due to a lack of awareness of a government-backed scheme.
Mental Health Crisis Breathing Space gives protection from creditors for as a long as an individual is receiving mental health crisis treatment.
But organisers say it is only reaching the “tip of the iceberg” of those who need help because professionals are not referring into the service.
Amrin Kerry, an approved mental health professional (AMHP) with charity The Kaleidoscope Plus Group leads the programme and said: “Local authority statistics show there are tens of thousands of people receiving mental health crisis support but we are getting one to two per cent of referrals from them.
“There is a huge link between financial difficulties and people’s mental health, relapses in mental health and the severity and need for crisis intervention.
“But because partner agencies are not having the right conversations the scheme isn’t being promoted so we are not getting as many referrals as we should.”
The scheme provides debt respite for people in England and Wales, pausing repayments, interest charges and enforcement notices for the duration of their mental health crisis.
As well as a freeze for the duration of treatment, the programme gives a further 30 days grace for debt advice. A patient needs to have qualifying debts and either be detained under the Mental Health Act or receiving acute care in a mental health setting or via a home treatment crisis team.
According to Kerry, problems with money often present alongside mental health problems.
“With so many people I have assessed who have become mentally unwell there’s variations of financial difficulties.
“People purchase things excessively, they start gambling, become substance misusers. They stop playing bills and don’t want to respond to letters.
“People can also misuse credit cards. I have known people buying expensive CCTV cameras and security systems to protect themselves because they are having delusional believes.”
People who are struggling with their mental health can also be victim to financial exploitation, said Kerry. “You’ve got debt companies that will give you same day cash loans with very extremely high interest rates.
“If you’re in mental health crisis and have a household to run, you’re going to try anything to rectify the situation and can become extremely vulnerable to these companies.”
The statutory programme is run by We Are Group which took over from mental health charity Rethink at the start of this year, working with the Kaleidoscope Plus Group and debt advisers from Toynbee Hall.
Kerry said the pandemic added to financial difficulties experienced by people in mental health crisis.
“That was especially so for people with psychosis, bipolar or schizophrenia and depression. It triggered a lot of severe mental health conditions, including hoarding and bulk-buying. For some it was delusional beliefs like the world’s going to end or there’s going to be an attack.”
It is not only people with a history of mental illness that can find themselves in mental and financial crisis triggered by life events, stressed Kerry.
“I’ve assessed many people in the community who’ve led able lives with a job and a family home. Then their relationship breaks down, they live in separate households and the financial implications of managing the finances on their own on top of work pressures and arranging contact with children triggers a deep depression.
“They have all these life issues, including financial strains, that they didn’t disclose until it gets to breaking point.”
Kerry urged professionals to have conversations about finances with people as part of their assessments.
“People aren’t talking about these things openly because they are embarrassed or they are ashamed.
“Social workers look at people holistically so they can identify these issues and start to do preventative work before things get to crisis.”
To find out more including how to make a referral visit www.wearegroup.com/mhcbs