Thousands of households across the UK are set to receive an early Christmas present from the Department for Work and Pensions in the form of a special one-off payment.
What is the DWP Christmas Bonus?
The payment is a tax-free £10 sum provided to people who claim certain benefits, acting as a small financial top-up to help with additional costs during the festive season. This annual payment is made automatically, typically during the first full week of December, meaning most eligible recipients will see the money in their accounts just in time for the Christmas shopping rush.
Eligibility and Payment Details
However, not everyone claiming benefits will receive this bonus. It is specifically for those on qualifying benefits such as Personal Independence Payment (PIP), Disability Living Allowance, and the State Pension. Crucially, the payment is not available to those who claim Universal Credit as a standalone benefit.
The government has confirmed that eligible individuals do not need to apply for the payment; it should be paid to them automatically. When checking bank statements, the transaction will appear listed as 'XB' or 'DWP XB'.
To qualify, a person must have been an 'ordinary resident' in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week, which is normally the first full week of December.
A Payment Frozen in Time
While the payment offers a small boost, its value has been a point of discussion. The £10 amount has not changed since the 1970s. When adjusted for inflation over the decades, the bonus has lost the equivalent of over £100 in value.
Despite its diminished purchasing power, the payment continues to be distributed each year to support those on qualifying benefits. For those who believe they are eligible but do not receive the payment, the government advises contacting the Jobcentre Plus office that handles their payments or the Pension Service.
As Christmas approaches, all benefit claimants should also be aware that most DWP payments due on Christmas Day or Boxing Day will be paid early, on Christmas Eve, to ensure people have access to their funds over the bank holiday.
