State pensioners who have lost their Winter Fuel Payment are set to receive a bonus from the Department for Work and Pensions (DWP). Those born between 1944 and 1958, who’ve seen their £200 or £300 allowance disappear, will be granted a £10 bonus by the DWP in December.
The Christmas Bonus is a one-time, tax-free payment of £10 made before Christmas to individuals receiving certain benefits during the qualifying week, typically the first full week of December. There’s no need to apply – the payment should be made automatically, reports Birmingham Live.
This ‘Christmas Bonus’ is a single, tax-free sum of £10 given to those receiving the State Pension or claiming specific other benefits such as Personal Independence Payment (PIP), Adult Disability Payment (ADP), Attendance Allowance and Carer’s Allowance – provided they meet the eligibility criteria during a particular qualifying period, usually the first full week in December.
While now 23 benefits qualify for the £10 payment, some 6.4 million people claiming Universal Credit do not. It’s worth noting that the DWP will issue this as a separate payment, independent of your scheduled State Pension or benefit payment, so it may arrive on a different day.
No one needs to apply for the additional £10 as it should automatically be deposited into the account where you typically receive your benefit payment or State Pension. It will appear as ‘DWP XB’ on bank statements and online accounts.
The £10 Christmas Bonus was introduced by Ted Heath’s Conservative Government in 1972. It has not been uprated or increased since it launched over five decades ago and in today’s money, it would be worth around £165 – when calculated under the composite price index published by the UK Office for National Statistics (ONS).