Nearly 24 million individuals across the UK are claiming at least one benefit from the Department for Work and Pensions (DWP), including 13 million pensioners receiving State Pension payments, 5.7 million on Universal Credit, and 3.7 million Personal Independence Payment (PIP) claimants.

However, many people, such as those newly retired or those receiving disability benefits like the new devolved Pension Age Disability Payment or Adult/Child Disability Payment, might not be aware of an annual bonus paid to certain claimants before Christmas. The DWP ‘Christmas Bonus’ is a one-off, tax-free payment of £10 given to people on certain benefits – but not Universal Credit.

Those on the State Pension, PIP, devolved Scottish disability benefits, Attendance Allowance, Carer’s Allowance – 23 benefits in total – will automatically receive the money before Christmas if they meet the eligibility criteria during a specific qualifying period, typically the first full week in December.

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It’s important to note 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, reports the Daily Record.

Nobody needs to apply for the extra £10 as it should automatically be deposited into the account where you typically receive your benefit payment or State Pension. It usually appears as ‘DWP XB’ on bank statements and online accounts – the precise code to watch out for will be confirmed closer to the time, reports the Mirror.

The £10 Christmas Bonus was initiated by Ted Heath’s Conservative Government in 1972. It has remained unaltered or uprated since its inception over five decades ago.

In today’s terms, it would be valued at approximately £118 when calculated using the composite price index published by the UK Office for National Statistics (ONS).

Who is eligible for the £10 Christmas Bonus?

To qualify for the Christmas Bonus, you must be present or ‘ordinarily resident’ in the UK, Channel Islands, the Isle of Man, or Gibraltar during the qualifying week of December 1 – 7 (to be confirmed). The DWP will reach out to eligible claimants informing them that they will receive the £10 bonus in December, but this communication sometimes arrives after the payment has been processed.

Qualifying benefits.

You must also be receiving at least one of the following benefits in the qualifying week:.

Not everyone over State Pension age will receive the payment, as explained in the DWP guidance on GOV.UK: “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.”

Married or cohabiting couples and civil partnerships.

The DWP guidance further clarifies that if you’re part of a married couple, in a civil partnership, or cohabiting as if you are, and you both receive one of the qualifying benefits, you will each be entitled to a £10 Christmas Bonus payment.

Even if your partner or civil partner doesn’t receive one of the qualifying benefits, they might still be eligible for the Christmas Bonus if certain conditions are met.

Additionally, one of the following must also apply:.

Claiming the bonus.

You don’t need to make a claim for the Christmas Bonus – it should be automatically credited to you. More information about the Christmas Bonus can be found on GOV.UK here.