Across the UK, some 22.7 million individuals are claiming at least one benefit from the Department for Work and Pensions (DWP). This figure includes nearly 12.7 million older people receiving State Pension payments, a contributory benefit only available to those of retirement age with at least 10 years’ worth of National Insurance Contributions.
However, many, including new retirees, may not be aware of an annual bonus paid to those on certain benefits before Christmas, which could prove useful during the colder months. The ‘Christmas Bonus’ is a one-off, tax-free £10 payment made to people in receipt of State Pension or those claiming certain other benefits including Personal Independence Payment (PIP), Attendance Allowance and Carer’s Allowance – if they meet the eligibility criteria during a specific qualifying period, typically the first full week in December.
Despite 22 benefits being eligible for the £10 payment, around 6.7 million people claiming Universal Credit do not qualify.
It’s important to note that the DWP will make this as a separate payment, independent of your scheduled State Pension or benefit payment, so it may arrive on a different day.
There’s no need to apply for the extra £10 as it should automatically go into the account where you usually receive your benefit payment or State Pension. It will show as ‘DWP XB’ on bank statements and online accounts.
The longstanding £10 Christmas Bonus, a relic of Ted Heath’s 1972 Conservative Government, has remained static since its inception over 50 years ago. Though originally more substantive, its value has dwindled with inflation; today, it’s the equivalent of approximately £115, according to the composite price index by the UK Office for National Statistics (ONS).
Who can claim the £10 Christmas Bonus?
Eligibility for the £10 Christmas Bonus is clear-cut: claimants must be present or ‘ordinarily resident’ in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week. For this year, the anticipated qualifying window is December 2 – 8, 2024.
Notification about eligibility and payment will come directly from the DWP, which will inform deserving recipients about their bonus in December. However, it’s not unusual for this information to reach beneficiaries after the bonus has already been paid.
Eligibility criteria for benefits
To qualify for the Bonus, claimants need to be receiving at least one of a list of benefits during the qualifying week.
- Adult Disability Payment (Scotland only)
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Carer Support Payment (Scotland only)
- Child Disability Payment (Scotland only)
- 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 Credit – the guarantee element
- Personal Independence Payment (PIP)
- State Pension (including Graduated Retirement Benefit)
- Severe Disablement Allowance (transitionally protected)
- 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
- Widow’s Pension
The DWP‘s guidance clarifies a potential misunderstanding for pensioners on GOV.UK, noting: “If you have not claimed your State Pension and are not entitled to one of the other qualifying benefits you will not get a Christmas Bonus.”
For married or cohabiting couples, as well as those in civil partnerships, there is also provision within this scheme.
The DWP guidance clarifies that if you’re part of a married couple, in a civil partnership or living together as if you are and you both receive one of the qualifying benefits, you will each be entitled to a £10 Christmas Bonus payment.
If your partner or civil partner does not receive one of the qualifying benefits, they may still be eligible for the Christmas Bonus if both the following apply:
- you’re both over State Pension age by the end of the qualifying week
- your partner or civil partner was also present (or ‘ordinarily resident’) in the UK, Channel Islands, Isle of Man, Gibraltar, European Economic Area (EEA) country or Switzerland during the qualifying week
One of the following must also apply:
How to claim
You do not need to apply for the Christmas Bonus – it should be automatically credited to you. Find out more about the Christmas Bonus on GOV.UK here.
