People will receive a unique payment from the DWP if they are eligible during the qualifying week.
Nearly 24 million people across the UK are claiming at least one benefit from the Department for Work and Pensions (DWP). That number includes 13m older people in receipt of State Pension payments (classed a contributory benefit), 5.7m on Universal Credit and 3.7m Personal Independence Payment (PIP) claimants.
However many people, including those new to State Pension age retirement, or people in receipt of disability benefits such as the new devolved Pension Age Disability Payment, or Adult/Child Disability Payment, may not be aware of an annual bonus paid to claimants on certain benefits before Christmas.
The DWP ‘Christmas Bonus’ is a one-off, tax-free payment of £10 made to people in receipt of certain benefits – but not Universal Credit.
READ MORE: Full list of DWP changes to PIP and Universal Credit due to start next yearREAD MORE: New welfare reforms update for people on Adult Disability Payment
Those on the State Pension, PIP, devolved Scottish disability benefits, Attendance Allowance, Carer’s Allowance – 23 benefits in total – will receive the money automatically before Christmas – if they meet the eligibility criteria during a specific qualifying period, which is typically the first full week in December.
It’s worth noting that the DWP will issue this as a separate payment, independent of your scheduled State Pension or benefit payment, so it may arrive on a different day.
Nobody needs to apply for the extra £10 as it should automatically go into the account where you usually receive your benefit payment or State Pension. It usually shows as ‘DWP XB’ on bank statements and online accounts, but we will confirm the exact code to look out for nearer the time.
The £10 Christmas Bonus was introduced by Ted Heath’s Conservative Government in 1972. It has not been uprated or increased since it launched over five decades ago and in today’s money, it would be worth around £118 – when calculated under the composite price index published by the UK Office for National Statistics (ONS).
Who is eligible for the £10 Christmas Bonus?
To qualify for the Christmas Bonus you must be present or ‘ordinarily resident’ in the UK, Channel Islands or Isle of Man, Gibraltar, during the qualifying week of December 1 – 7 (to be confirmed).
The DWP will write to eligible claimants advising them that they will be receiving the £10 bonus in December, but this sometimes arrives after the payment has been made.
Qualifying benefits
You must also get at least one of the following benefits in the qualifying week:
- Adult Disability Payment (Scotland only)
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Carer Support Payment (Scotland only)
- Child Disability Payment (Scotland only)
- Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
- Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
- Disability Living Allowance
- Incapacity Benefit at the long-term rate
- Industrial Death Benefit (for widows or widowers)
- Mobility Supplement
- Pension Age Disability Payment (Scotland only)
- Pension Credit – the guarantee element
- Personal Independence Payment (PIP)
- State Pension (including Graduated Retirement Benefit)
- Severe Disablement Allowance (transitionally protected)
- Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
- War Disablement Pension at State Pension age
- War Widow’s Pension
- Widowed Mother’s Allowance
- Widowed Parent’s Allowance
- Widow’s Pension
Not everyone over State Pension age will get the payment, DWP guidance on GOV.UK explains: “If you have not claimed your State Pension and are not entitled to one of the other qualifying benefits you will not get a Christmas Bonus.”
Married or cohabiting couples and civil partnerships
The DWP guidance explains that if you’re part of a married couple, in a civil partnership or living together as if you are and you both get one of the qualifying benefits you will each get a £10 Christmas Bonus payment.
If your partner or civil partner does not get one of the qualifying benefits, they may still get the Christmas Bonus if both the following apply:
- you’re both over State Pension age by the end of the qualifying week
- your partner or civil partner was also present (or ‘ordinarily resident’) in the UK, Channel Islands, Isle of Man, Gibraltar, European Economic Area (EEA) country or Switzerland during the qualifying week
One of the following must also apply:
- You are entitled to an increase of a qualifying benefit for your partner or civil partner
- the only qualifying benefit you are getting is Pension Credit
How to claim
You do not need to claim the Christmas Bonus – you should get it automatically. Find out more about the Christmas Bonus on GOV.UK here.
Get the latest Record Money news
Join the conversation on our Money Saving Scotland Facebook group for money-saving tips, the latest State Pension and benefits news, energy bill advice and cost of living updates.
Sign up to our Record Money newsletter and get the top stories sent to your inbox daily from Monday to Friday with a special cost of living edition every Thursday – sign up here.
You can also follow us on X (formerly Twitter) @Recordmoney_ for regular updates throughout the day or get money news alerts on your phone by joining our Daily Record Money WhatsApp community.