People who claim certain benefits will be paid a one-off, tax-free payment before Christmas
The Christmas bonus will be automatically credited to your account (Image: SolStock via Getty Images)
Around 24 million people across Britain are currently receiving at least one benefit from the Department for Work and Pensions (DWP). This figure includes 13 million pensioners who receive State Pension payments (classed as a contributory benefit), eight million on Universal Credit, and 3.8 million Personal Independence Payment (PIP) claimants.
However, many people, including those newly eligible for State Pension age retirement, or individuals receiving disability benefits such as the new devolved Pension Age Disability Payment, or Adult/Child Disability Payment, might not be aware of an annual bonus paid to certain benefit recipients before Christmas.
The DWP “Christmas Bonus” is a one-off, tax-free payment of £10 made to individuals receiving certain benefits – but not Universal Credit.
Payments will be automatically given before January 1, 2026. For money-saving tips, sign up to our Money newsletter here
People who claim State Pension, PIP, Attendance Allowance, Carer’s Allowance – 24 benefits in total – will automatically receive the money before Christmas if they meet the eligibility criteria during a specific qualifying period, usually the first full week in December.
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.
No one is required to submit an application for the additional £10 as it will be deposited automatically into the account where you typically receive your benefit payment or State Pension. It generally appears as ‘DWP XB’ on banking statements and digital accounts, though we shall verify the precise code to watch for closer to the date.
The £10 Christmas Bonus was established by Ted Heath’s Conservative Government in 1972. It has remained unchanged and has not increased since its launch more than five decades ago and in current terms, it would be valued at approximately £118 – when assessed using the composite price index released by the UK Office for National Statistics (ONS).
Who qualifies for the £10 Christmas Bonus?
To be entitled to the Christmas Bonus you must be present or ‘ordinarily resident’ in the UK, Channel Islands or Isle of Man, Gibraltar, throughout the qualifying week of December 1-7 (to be confirmed).
The DWP will contact eligible claimants informing them that they will be receiving the £10 bonus in December, though this correspondence sometimes arrives following the payment being processed.
Qualifying benefits
You must also receive at least one of the following benefits during the qualifying week:
Armed Forces Independence PaymentAttendance AllowanceCarer’s AllowanceConstant 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 AllowanceIncapacity Benefit at the long-term rateIndustrial Death Benefit (for widows or widowers)Mobility SupplementPension Credit – the guarantee elementPersonal 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 ageWar Widow’s PensionWidowed Mother’s AllowanceWidowed Parent’s AllowanceWidow’s Pension
Not everyone beyond State Pension age will receive the payment, DWP guidance on GOV.UK clarifies: “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 has outlined that if you’re married, in a civil partnership or cohabiting as though you are, and both of you receive one of the qualifying benefits, you’ll 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:
You’re both over State Pension age by the end of the qualifying weekYour 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
Additional criteria must also be satisfied:
You are entitled to an increase of a qualifying benefit for your partner or civil partnerThe only qualifying benefit you are getting is Pension CreditHow to claim
There’s no need to apply for the Christmas Bonus as it should be automatically credited to your account before January 1, 2026. More information about the Christmas Bonus can be found on the GOV.UK website.