What is the DWP Christmas Bonus?
The DWP provides a one-off £10 Christmas Bonus each December to qualifying individuals. Since it’s introduction in 1972, this payment has aimed to support those on certain benefits with the financial strain of the festive period. The bonus is tax-free and paid automatically to those who qualify.
Although £10 may not stretch far today, the tradition has endured for over 50 years, providing a small yet helpful boost to recipients’ December budgets. However, with inflation over the years, some argue that this amount no longer provides meaning support.
Who is Eligible for the Bonus?
To receive the DWP Christmas Bonus, individuals must be living in the UK, Channel Islands, Isle of Man, Gibraltar or certain other European areas during qualifying week. The qualifying week typically falls in the first week of December. Additionally, they must be receiving at least one of the following benefits during this period:
- State Pension (including Graduated Retirement Benefit)
- Personal Independence Payment (PIP)
- Attendance Allowance
- Carer’s Allowance
- Pension Credit (guarantee element)
- Disability Living Allowance
- Armed Forces Independence Payment
- And several other disability and widows’ pensions
Each person who qualifies will receive the £10 bonus. If both partners in a couple receive qualifying benefits, each will receive a separate payment. Those with partners who do not qualify may still be eligible if they meet certain criteria.
How is the Christmas Bonus Paid?
The DWP usually deposits the Christmas Bonus directly into the recipient’s bank account, where it may appear as ‘DWP XB’ on statements. Since it’s a one-off payment and not part of regular benefit payments, it may arrive separately from typical benefit deposits.
If recipients do not see the bonus by early January, they should contact the Jobcentre Plus Office or the Pension Service for assistance.
An Increase to the DWP Christmas Bonus
Since its inception, the £10 amount has remained unchanged, despite rising inflation. According to analysts, if the bonus had kept pace with inflation, it would be closer to £130 today. Moreover, this disparity has sparked criticism and led to petitions calling for the government to adjust the bonus amount.
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