Key Highlights
- The Department for Work and Pensions (DWP) is set to distribute a £10 Christmas bonus to thousands of eligible benefit claimants.
- This annual payment, which has remained unchanged since 1972, will be made before Christmas but only to those claiming qualifying benefits.
- The payment will typically arrive in bank accounts with the reference ‘XB’ or ‘DWP XB’ on December 24th this year due to changes in DWP payment schedules.
Government Plan for Christmas Bonus Payments
The Department for Work and Pensions (DWP) is preparing to distribute a £10 Christmas bonus, a tradition that has been in place since 1972. This annual financial support will be automatically issued before Christmas but only to individuals claiming certain benefits.
Eligibility Criteria
The Christmas Bonus is reserved for those receiving specific benefits in the qualifying week, which is typically the first full week of December. Eligible claimants must receive one of the following benefits during this period:
- Carer’s Allowance
- Personal Independence Payment (PIP)
- Pension Credit
Other qualifying benefits include contributions-based Employment and Support Allowance, Disability Living Allowance, Industrial Death Benefit, State Pension, and several others. Those claiming Universal Credit as a standalone benefit are not eligible for this bonus.
Payment Details and Timeline
The Christmas Bonus is described by the government as “a one-off tax-free £10 payment made before Christmas.” The payment will usually be credited to bank accounts with the reference ‘XB’ or ‘DWP XB’. This year, due to changes in DWP payment schedules, most payments due on Christmas Day (25 December) and Boxing Day (26 December) are expected to be paid out on Christmas Eve (24 December).
This adjustment is not new; it has been implemented in previous years as well. However, the final confirmation from the department is usually announced closer to the time of payment.
Historical Context and Future Outlook
The £10 bonus remains unchanged since its inception in 1972, making it subject to significant inflation adjustments over the decades. According to official statistics, the value of this bonus has degraded by more than £100 due to inflation since its introduction.
While no plans have been announced to increase or change the payment level, advocacy groups and representatives continue to push for a higher amount. The government’s stance on potential changes to the Christmas Bonus remains uncertain as of now.
Conclusion
The DWP’s Christmas bonus is an annual tradition that provides financial support to eligible benefit claimants just in time for the festive season. While the £10 payment may seem small, it serves as a gesture of goodwill and recognition of the challenges faced by many during the holiday period.
