The Labour government has refused to raise the £10 Christmas bonus from the Department of Work and Pensions (DWP), despite widespread calls for it to be adjusted to inflation.
The DWP bonus is a one-off, tax-free payment to individuals who receive certain benefits.
It is usually sent out during the first week of December, at the beginning of the holiday season.
However, the amount has remained the same since the bonus was implemented in 1972. If the payment were adjusted for inflation, the bonus would be worth £114.75 today.
The move comes after Labour recently scrapped the Winter Fuel Payment for all but the poorest. Chancellor Rachel Reeves says the budget cut is necessary to patch a “£22bn black hole” in the public finances.
The issue has prompted thousands of individuals to sign a petition demanding the government to raise the Christmas bonus for the first time in over 50 years.
Since launching in October 2023, the petition has garnered over 17,000 signatures from disgruntled citizens. Shona McMahon, who launched the campaign, said: “Christmas is the most expensive time of year! Pensioners, the vulnerable, and people like myself, disabled, could do with an extra boost at this time of year, especially as the energy assistance has been axed.
“The excuse would probably be that we are getting the £300 cost of living payment. For many of us, that payment goes out on bills the same day it goes into the bank, so there is no chance of it lasting till Christmas!
“This isn’t asking for ‘just another handout’. This is for those of us that don’t have an option to earn anything extra.”
Despite cries for change, the Labour government has declared their intention to keep the bonus at £10.
However, many fear that Labour will scrap the benefit altogether. This does not seem out of the question, as axing the payment would save the Treasury £175m a year, but would likely be seen as a controversial move.
Those eligible for the DWP bonus include those on Adult Disability Payment, Carer’s Allowance, Pension Credit, and War Widow’s Pension, among others.
