The Department for Work and Pensions (DWP) is set to hand out its annual bonus to eligible recipients before Christmas.
This tax-free payment is automatically issued to those receiving certain benefits during the qualifying week, typically the first full week of December.
The bonus, aimed at easing festive expenses, does not require an application and is paid alongside regular benefits.
Recipients can identify the payment on their bank statements by looking for the code ‘DWP XB’.
Despite its modest amount, the Christmas Bonus has been a longstanding initiative since 1972, offering a small financial boost during a period of increased costs.
To qualify, individuals must be receiving specific benefits and reside in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week.
The £10 Christmas Bonus is available to those receiving a range of qualifying benefits,
PA
The £10 Christmas Bonus is available to those receiving a range of qualifying benefits, including State Pension, Personal Independence Payment (PIP), Employment and Support Allowance (ESA), Disability Living Allowance (DLA), and Carer’s Allowance, among others.
The full list is extensive and can be found on the Government’s website.
Individuals need only be receiving one qualifying benefit to be eligible.
For married couples or those in civil partnerships where both partners receive qualifying benefits, each person will receive the £10 bonus.
It’s important to note that those who have not claimed their state pension and are not entitled to other qualifying benefits will not receive the bonus.
The Christmas Bonus has remained unchanged at £10 since its introduction in 1972 by Prime Minister Edward Heath’s Conservative Government.
Despite discussions about inflation’s impact on its value, there are currently no plans to increase the amount.
The bonus continues as a symbolic gesture of support for pensioners and those on qualifying benefits. However, its real value has decreased significantly over the past five decades.
If eligible recipients haven’t received the Christmas Bonus by mid-December, they should contact the DWP.
While the process is largely automated, occasional issues can arise, particularly if there have been changes to benefits or personal details.
The bonus is tax-free and does not affect any other benefits received. It appears as a separate payment from regular benefits in bank statements, making it easy to identify.
For those who believe they’re eligible but haven’t received the payment, contacting the Jobcentre Plus office that handles their payments or the Pension Service is advised.
This should be done if the bonus hasn’t arrived by January 1, 2025.