Millions of people across the UK receiving certain benefits will soon see a Christmas bonus payment from the Department for Work and Pensions (DWP). The £10 payment, which is typically issued during the first full week of December, is available to those claiming a range of benefits, including state pension and Personal Independence Payment (PIP).
The payment is automatically made to eligible individuals, providing a small but significant boost to those in receipt of specific benefits. However, the lack of any substantial increase to this payment since its introduction in 1972 has sparked criticism among some groups, who argue it no longer meets the financial needs of many recipients.
Who Is Eligible for the DWP Christmas Bonus?
To qualify for the Christmas bonus, individuals must be receiving one of several qualifying benefits during the “qualifying week,” which typically takes place in the first full week of December. Benefits covered include:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Child Disability Payment
- 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 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
According to the DWP, the payment will be made automatically to those eligible, and no application is necessary.
This bonus is available to individuals living in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week. For married couples or civil partners, both parties must be receiving one of the qualifying benefits to receive the bonus.
In instances where only one partner is receiving benefits, they may still qualify if certain conditions are met, such as being entitled to an increase in a qualifying benefit for their partner.
The Christmas bonus is paid tax-free and does not affect any other benefits a person may receive. Typically, recipients will see “DWP XB” listed on their bank statements as the source of the payment.
A Legacy of Limited Impact: Is £10 Enough?
The Christmas bonus, originally introduced by the DWP in 1972, has remained at £10 since 2009, after a brief increase to £70 in 2008 to help individuals during the financial crisis.
Since then, the payment has not been adjusted for inflation or changed to reflect the increased cost of living. Some campaigners argue that this flat payment is insufficient in light of rising living costs, particularly for vulnerable groups.
Despite its history and the occasional call for change, the DWP has yet to commit to a permanent increase. The £10 amount remains largely symbolic, providing a modest gesture of support. Critics, however, are calling for a reconsideration of its value to better serve those it was intended to help.
