Millions of people across the United Kingdom who receive the state pension are set for a small financial boost in time for the expensive Christmas period.
What is the Christmas Bonus Payment?
The payment, known officially as the Christmas Bonus, is a one-off, tax-free sum of £10. It is paid annually to those who receive certain benefits, with the primary group being state pensioners. The government has confirmed the extra cash will be automatically deposited into bank accounts over the coming couple of weeks, ensuring it arrives before Christmas Day.
There is no need to apply for the payment. It is paid directly to those who are eligible based on the benefits they were receiving in what is termed the 'qualifying week'. This week is typically the first full week of December.
Who Qualifies for the Festive Cash?
The bonus is designed to provide a little help with the added costs of the festive season. As well as those on the state pension, households receiving a range of other benefits may also qualify. These include:
- Pension Credit
- Disability Living Allowance
- Carer's Allowance
- Attendance Allowance
However, there is an important exception. The government states that individuals who receive Universal Credit and no other qualifying benefits will not be eligible for the £10 Christmas Bonus this year.
Criticism and Government Stance
While the payment is a welcomed annual tradition for many, it has not been without its critics. Some argue that the £10 amount is too low and has not kept pace with the rising cost of living, especially during the costly festive period. They have called for the sum to be increased to provide more meaningful support.
The Government's position is that the bonus is a longstanding provision. A spokesperson said: "The Christmas Bonus is a one-off tax-free £10 payment made before Christmas, paid to people who get certain benefits in the qualifying week. This is normally the first full week of December. You do not need to claim - you should get paid automatically."
For eligible pensioners and benefit claimants, the payment will serve as a small but timely contribution towards their holiday expenses.