Nearly 24 million individuals in the UK are presently receiving benefits from the Department for Work and Pensions (DWP). This group consists of pensioners collecting State Pension payments, as well as recipients of Universal Credit and Personal Independence Payment (PIP).
Many of these beneficiaries, particularly those newly eligible for the State Pension or individuals receiving disability benefits, may not be informed about an annual bonus distributed to certain claimants before the Christmas period.
The DWP’s ‘Christmas Bonus’ is a one-time, tax-free sum given to individuals receiving specific benefits. Typically, this bonus is disbursed automatically before January 1, 2026.
The government provides a £10 bonus to 24 different recipients who usually receive the payment automatically before Christmas, provided they meet the eligibility criteria during a specified period, typically the initial full week of December.
It is worth noting that the DWP issues this bonus as a separate payment, distinct from the regular State Pension or benefit payment, so it may arrive on a different date, as reported by the Daily Record.
No application is required for the additional £10 as it should be automatically credited to the account where the regular benefit payment or State Pension is received. The payment is typically labeled as ‘DWP XB’ on bank statements and online accounts, with the specific code to be confirmed closer to the payment date.
Introduced in 1972 by Ted Heath’s Conservative Government, the £10 Christmas Bonus remains unchanged in value. Adjusted for inflation using the composite price index published by the UK Office for National Statistics (ONS), it would be equivalent to approximately £118 in today’s terms.
To be eligible for the Christmas Bonus, individuals must be present or ‘ordinarily resident’ in specific regions during the qualifying week of December 1 – 7 (to be confirmed). The DWP will notify eligible claimants about the £10 bonus in December, although the communication may sometimes arrive after the payment has been made.
Regarding qualifying benefits, individuals must receive at least one of the specified benefits during the highlighted week. DWP guidance on GOV.UK clarifies that not all individuals above State Pension age are eligible for the payment if they have not claimed their State Pension or do not qualify for other specified benefits.
Additionally, if both partners in a married couple, civil partnership, or cohabiting arrangement receive qualifying benefits, they are each entitled to a £10 Christmas Bonus payment.
In cases where one partner does not receive a qualifying benefit, they may still qualify for the Christmas Bonus if specific conditions are met, as outlined in the DWP guidance.