The one-off, tax-free payment is made to people in receipt of certain benefits
Nearly 24 million people across the UK are currently claiming at least one benefit from the Department for Work and Pensions (DWP). This figure includes pensioners receiving State Pension payments, as well as those on Universal Credit and Personal Independence Payment (PIP).
However, many of those people, including those newly eligible for the State Pension or those receiving disability benefits, may not be aware of an annual bonus paid to certain claimants before Christmas.
The DWP ‘Christmas Bonus’ is a one-off, tax-free payment made to people receiving specific benefits. It is usually issued automatically before January 1, 2026.
The government pays out the £10 bonus to 24 different claimants who usually receive the money automatically before Christmas, providing they meet the eligibility criteria during a qualifying period. This is 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.
There’s no need to apply for the extra £10 as it should automatically be deposited into the account where you usually receive your benefit payment or State Pension. It typically appears as ‘DWP XB’ on bank statements and online accounts, but the exact code to look out for can be confirmed 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 was created over five decades ago. If it had, by today’s standard, it would be worth around £118 when calculated under the composite price index published by the UK Office for National Statistics (ONS).
Who is and isn’t eligible for the £10 Christmas Bonus?
To qualify for the Christmas Bonus, you must be present or ‘ordinarily resident’ in the UK, Channel Islands, 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 get at least one of the following benefits in the highlighted 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)
- Scottish Adult Disability Living Allowance (Scotland only)
- 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.”
The DWP guidance clarifies that if you’re part of a married couple, in a civil partnership or living together 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 conditions are met:
- 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