Key Highlights
- The Department for Work and Pensions (DWP) is set to distribute a one-off £10 Christmas bonus to qualifying benefit claimants.
- This payment will be automatically made before Christmas, but only to those receiving certain benefits in the first week of December.
- Those claiming Universal Credit as a standalone benefit are not eligible for this bonus.
- The £10 sum has remained unchanged since 1972 and has significantly degraded due to inflation.
The Christmas Bonus: A Decade-Old Tradition
The Department for Work and Pensions (DWP) is preparing to distribute a one-off £10 Christmas bonus to eligible benefit claimants. This annual payment, which has been in place since 1972, aims to provide financial relief to those who rely on various government benefits during the holiday season.
This year’s distribution is particularly significant as it marks a continuation of this longstanding tradition. However, it’s important to note that not all benefit recipients will receive the bonus; only those claiming certain benefits in the first week of December are eligible. This includes Carer’s Allowance, Personal Independence Payment (PIP), and Pension Credit.
Eligibility Criteria: A Decisive Factor
For individuals to qualify for the Christmas bonus, they must be receiving one of the following benefits in the first week of December:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Carer Support Payment
- Child Disability Payment
- 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
- Pension Credit – the guarantee element
- Personal Independence Payment (PIP)
- Scottish Adult Disability Living Allowance (SADLA)
- Severe Disablement Allowance (transitionally protected)
- State Pension (including Graduated Retirement Benefit)
- 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
The Economic Impact and Future Prospects
The £10 bonus, while small, holds significant importance for those who receive it. However, the fact that this amount has not changed since 1972 highlights its diminishing value due to inflation. Government guidance notes that this payment is made automatically before Christmas as a tax-free sum.
Despite ongoing calls to increase the bonus, no plans have been announced to boost the £10 figure in response to rising costs and economic pressures faced by many benefit claimants.
This year, similar to previous years, most DWP payments due on Christmas Day or Boxing Day will be paid on Christmas Eve as a precautionary measure.
For couples who are married, in a civil partnership, or cohabiting (in certain circumstances), both will receive the payment if they are receiving one of these qualifying benefits. This ensures that families can benefit from the financial support during the holiday season.
Conclusion
An Annual Reminder of Government Support
The DWP’s Christmas bonus serves as a reminder of government support for those in need during festive times. While the £10 amount has not been adjusted since 1972, its significance remains for many benefit claimants who rely on this small sum to help make ends meet.
