The Department for Work and Pensions has confirmed that the Christmas Bonus will remain frozen at £10 under the new Labour government led by Prime Minister Andy Burnham, who is set to take office on Monday. While many benefits rise annually with inflation or through mechanisms like the Triple Lock, this one-off payment will not increase.
Christmas Bonus Details
The Christmas Bonus is a tax-free £10 payment made automatically before Christmas to people who receive certain benefits during the qualifying week, which is typically the first full week of December. The DWP states: "The Christmas Bonus is a one-off payment of £10." Claimants do not need to apply; the payment is issued automatically.
To qualify, recipients must be present or ordinarily resident in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week. They must also receive at least one qualifying benefit in that week. If eligible individuals have not received the payment by 1 January, they are advised to contact their Jobcentre Plus office or the Pension Service.
Welfare Reform Context
The freeze comes amid growing concerns about the rising DWP welfare bill. Labour has been urged to control costs, and incoming Prime Minister Andy Burnham is widely expected to appoint Birmingham MP Shabana Mahmood as Chancellor. She will be responsible for pushing through welfare reforms. The Christmas Bonus freeze is a small but symbolic step in addressing the ballooning budget.
Under the new government, other benefit increases will continue as usual, but the Christmas Bonus will remain at £10, a sum that has not changed for many years. The DWP confirmed that receiving the bonus does not affect any other benefits a claimant may receive.
