The Department for Work and Pensions (DWP) has confirmed there are no current plans to increase the longstanding £10 Christmas Bonus for claimants of Universal Credit, Pension Credit, Personal Independence Payment (PIP), and other benefits. The bonus, introduced in 1972, has remained at the same level despite inflation significantly reducing its value over the decades.
DWP Confirms No Plans for an Increase
The question of raising the Christmas Bonus was recently brought up in Parliament by Liberal Democrat MP Anna Sabine, who asked whether the government intended to review and increase the payment to reflect inflation. If adjusted for inflation, the bonus would now be worth around £115, representing an increase of £105 from its original amount.
In response, pensions minister Torsten Bell stated :
“The Department has no current plans to make such an assessment. The Christmas Bonus was initially introduced as a one-off payment of £10 in 1972 and has not been uprated or increased on a yearly basis like some benefits.”
Who Is Eligible for the £10 Christmas Bonus?
Despite calls for an increase, the Christmas Bonus remains a one-off tax-free payment of £10 for individuals receiving certain state benefits. To qualify, recipients must be claiming a qualifying benefit during the first week of December. Payments are typically issued during this same week and may appear on bank statements as ‘DWP XB’.
Those receiving the following benefits and allowances may be eligible:
- State Pension (including Graduated Retirement Benefit)
- Pension Credit – the guarantee element
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Carer’s Allowance
- Attendance Allowance
- Armed Forces Independence Payment
- War Widow’s Pension
- Industrial Death Benefit (for widows or widowers)
- War Disablement Pension (at State Pension age)
- Adult Disability Payment
- Child Disability Payment
- Pension Age Disability Payment
- Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
- Severe Disablement Allowance (transitionally protected)
- Mobility Supplement
- Widowed Mother’s Allowance
- Widowed Parent’s Allowance
- Widow’s Pension
- Contribution-based Employment and Support Allowance (after the first 13 weeks of claim)
- Incapacity Benefit (at the long-term rate)
While the payment remains unchanged, eligible recipients do not need to apply, as it is issued automatically to those meeting the criteria.
The lack of adjustment to the Christmas Bonus reflects a DWP policy that prioritises maintaining existing benefits rather than increasing them in line with inflation. While this symbolic payment continues to be issued to eligible recipients, its purchasing power has significantly diminished over the decades.
No DWP review is planned, leaving it as a one-off support payment with a limited financial impact amid rising living costs.
