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. Here’s everything you need to know
Nearly 24 million people across the UK are claiming at least one benefit from the Department for Work and Pensions (DWP), including 13 million pensioners receiving State Pension payments, 5.7 million on Universal Credit, and 3.7 million Personal Independence Payment (PIP) claimants.
However, many people, such as those newly retired or those receiving disability benefits like the new devolved Pension Age Disability Payment or Adult/Child Disability Payment, might not be aware of an annual bonus paid to certain claimants before Christmas. The DWP ‘Christmas Bonus’ is a one-off, tax-free payment of £10 given to people on certain benefits – but not Universal Credit.
Those on the State Pension, PIP, devolved Scottish disability benefits, Attendance Allowance, Carer’s Allowance – 23 benefits in total – will automatically receive the money before Christmas if they meet the eligibility criteria during a specific qualifying period, typically the first full week in December.
It’s important to note 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, reports the Daily Record.
Nobody needs to apply for the extra £10 as it should automatically be deposited into the account where you typically receive your benefit payment or State Pension. It usually appears as ‘DWP XB’ on bank statements and online accounts – the precise code to watch out for will be confirmed closer to the time.
The £10 Christmas Bonus was launched by Ted Heath’s Conservative Government in 1972. It has remained unchanged or uprated since it was introduced over five decades ago. In today’s money, it would be valued at approximately £118 when calculated using the composite price index published by the UK Office for National Statistics (ONS).
Who qualifies for the £10 Christmas Bonus?
To be eligible for the Christmas Bonus you must be present or ‘ordinarily resident’ in the UK, Channel Islands, the Isle of Man, or Gibraltar during the qualifying week of December 1 – 7 (to be confirmed). The DWP will contact eligible claimants informing them that they will be receiving the £10 bonus in December, but this correspondence sometimes arrives after the payment has been processed.
Qualifying benefits
You must also receive at least one of the following benefits in the qualifying week:
- 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 receive 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 clarifies that if you’re part of a married couple, in a civil partnership, or cohabiting as if you are, and you both receive one of the qualifying benefits, you will each be entitled to a £10 Christmas Bonus payment.
If your partner or civil partner does not receive one of the qualifying benefits, they may still be eligible for 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
There’s no need to claim the Christmas Bonus – it should be automatically credited to you. Find out more about the Christmas Bonus on GOV.UK here.