The Department for Work and Pensions (DWP) has announced a £10 Christmas Bonus for pensioners and certain benefit claimants this December. For those born between 1944 and 1958 who may have missed their Winter Fuel Payment of £200 or £300, this bonus offers a small but welcome relief during the holiday season.
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What is the Christmas Bonus?
The Christmas Bonus is a one-off, tax-free payment of £10 paid automatically to eligible individuals receiving specific benefits during the qualifying week—usually the first full week of December.
Key points to note:
- The bonus is issued separately from regular State Pension or benefit payments.
- It will appear as ‘DWP XB’ on bank statements or online accounts.
- There’s no need to apply—the payment is made automatically.
Who is Eligible for the £10 Bonus?
To receive the Christmas Bonus, individuals must meet the criteria for certain benefits during the qualifying period. This includes:
- State Pension
- Personal Independence Payment (PIP)
- Adult Disability Payment (ADP)
- Attendance Allowance
- Carer’s Allowance
In total, 23 benefits qualify for the payment. However, it’s important to note that around 6.4 million Universal Credit claimants are not eligible for this festive bonus.
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Why £10? A Look at the History
The Christmas Bonus was first introduced in 1972 by Ted Heath’s Conservative Government as a gesture to help pensioners and benefit claimants with extra holiday expenses.
Unfortunately, despite decades of inflation, the bonus has not increased since its inception. In today’s economy, that original £10 payment would be worth approximately £165, according to the UK Office for National Statistics (ONS) composite price index.
How Will You Receive the Payment?
Eligible individuals will see the payment credited to the same account where they receive their State Pension or benefits. Since it’s issued separately, it may arrive on a different day than regular payments. To identify it, check for ‘DWP XB’ on your bank statement.
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While £10 may seem modest in today’s terms, the Christmas Bonus remains a longstanding tradition for millions of pensioners and benefit claimants in the UK. With rising costs over the winter months, every bit of support can help during the festive season.
If you believe you qualify but do not receive the bonus, contact the DWP to ensure your details are up to date.
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