Millions of households are set to receive the Department for Work and Pensions’ (DWP) Christmas bonus before the end of the year. This annual tradition, dating back to 1972, involves a £10 bonus for individuals receiving specific benefits. Despite its long history, the bonus has been criticised by some families who consider the amount to be insufficient and unchanging, leading to it being labelled an “insult.”
In the wake of the 2008 financial crisis, the Christmas bonus briefly increased to £70 but later reverted to the standard £10 amount. If adjusted for inflation, today’s bonus would amount to £114.75, according to calculations by the Bank of England. Eligible recipients of benefits during the “qualifying week” in December, usually the first full week of the month, will receive the bonus. The listed benefits that qualify for the Christmas bonus include various allowances and payments such as Disability Living Allowance, Pension Credit, and Personal Independence Payment.
To be eligible, individuals must be “ordinarily resident” in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week. Married couples, civil partnerships, or cohabiting partners can both receive the bonus if each person is claiming one of the specified benefits. The £10 bonus is automatically paid to those entitled to it, without the need for an application. It appears as “DWP XB” on bank statements, is tax-free, and does not affect other benefits.
For partners who do not receive qualifying benefits but meet certain criteria, there is a possibility of still receiving the payment if specific conditions are met. This includes both partners being over State Pension age by the end of the qualifying week and meeting residency requirements. The only qualifying benefit the recipient is getting must be Pension Credit. The DWP’s Christmas bonus aims to provide extra financial support to those in need during the festive season, with millions of households across the UK expected to benefit from this annual payment.