Personal finance experts have highlighted a series of schemes that could put an extra £515 into the pockets of UK households ahead of the festive season. The advice comes as families face increased financial pressure during the Christmas period, with several surprisingly straightforward routes to accessing additional funds.
Bank Bonuses and Switching Incentives
One of the most immediate ways to secure a cash injection is through bank switching bonuses. Santander is currently offering £200 to customers who switch to their Everyday Current Account using the Current Account Switch Service (CASS). Similarly, First Direct and Royal Bank of Scotland (RBS) are both providing £175 to new customers who complete a full switch via CASS.
Martin Lewis's team at Money Saving Expert explains that these incentives are a tactic banks use to attract new customers. The process is designed to be seamless: the CASS guarantee ensures all payments, Direct Debits, and standing orders are automatically moved to the new account, and the old one is closed. Experts recommend downloading a few years' of statements from your old bank before switching for future reference.
Government and Council Support Schemes
Beyond the high street banks, several government-backed schemes are providing crucial support. The Department for Work and Pensions (DWP) has allocated £742 million to councils across England for the 2025/26 financial year under the Household Support Fund. Local authorities are distributing this money based on their own criteria.
For example, Islington Council in London is providing £200 payments to low-income residents aged over 66. Applicants need to provide a bank statement showing their name and address. The council warns that funds are limited and only one payment is available per household. Successful applicants receive a letter to take to the Post Office to collect the cash.
Automatic Payments and Everyday Savings
Some payments are made automatically to those who qualify. The DWP's annual £10 Christmas Bonus is a one-off payment sent to qualifying benefit claimants to help with festive costs, with no application required.
Furthermore, Cold Weather Payments of £25 per week are triggered when the local average temperature is recorded as 0°C or below for seven consecutive days between November 1 and March 31. Eligibility depends on receiving certain benefits like Universal Credit or Pension Credit, and often requires having a disability, a child under five, or a disabled child. These payments are also made automatically.
Finally, savvy shoppers can boost their budgets through cashback. Personal finance educator Charlotte Jessop suggests that using cashback tools could save the average household around £80 on Christmas spending, based on an estimated festive spend of £1,600. This method provides a simple way to effectively increase your available cash without applying for a scheme.
With a combination of proactive switching, checking local council support, and utilising automatic entitlements, households across the UK have a genuine opportunity to ease financial strain this December. The key, experts say, is to act promptly where applications are required, as funds for some schemes are limited.
