Millions of benefit recipients in the UK are in line to receive a £10 tax-free Christmas bonus from the Department for Work and Pensions (DWP) this year.
This annual one-off payment is provided to those who receive qualifying benefits such as Pension Credit, Attendance Allowance, and Personal Independence Payment (PIP).
Although modest in value, the Christmas bonus serves as a seasonal boost for eligible individuals and households. No application is required, as the bonus is paid automatically into bank accounts.
When Will the Christmas Bonus Be Paid?
To qualify for the payment, claimants must be receiving one of the eligible benefits during the “qualifying week,” which is typically the first full week of December.
Who Is Eligible for the £10 Bonus?
You must be present or “ordinarily resident” in the UK, Isle of Man, Channel Islands, or Gibraltar during the qualifying week. Additionally, you must be receiving at least one of the qualifying benefits:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Child Disability Payment
- Constant Attendance Allowance (under Industrial Injuries or War Pensions schemes)
- Contribution-based Employment and Support Allowance (main phase only)
- Disability Living Allowance
- Incapacity Benefit (long-term rate)
- Industrial Death Benefit (widows or widowers)
- Mobility Supplement
- Pension Credit (guarantee element)
- Personal Independence Payment (PIP)
- State Pension (including Graduated Retirement Benefit)
- Severe Disablement Allowance (with transitional protection)
- Unemployability Supplement or Allowance
- War Disablement Pension (State Pension age)
- War Widow’s Pension
- Widowed Mother’s Allowance
- Widowed Parent’s Allowance
- Widow’s Pension
What If You’re in a Couple?
Both members of a couple can receive the bonus separately if each person receives a qualifying benefit.
However, if only one partner is on a qualifying benefit, the other may still receive the bonus if:
- Both are over State Pension age by the end of the qualifying week.
- Your partner or civil partner is present (or “ordinarily resident”) in the UK, Isle of Man, Channel Islands, Gibraltar, an EEA country, or Switzerland during the same week.
- Additionally, either:
- You’re entitled to an increase in your qualifying benefit for your partner.
- Your sole qualifying benefit is Pension Credit.
How Is the Bonus Paid?
- The £10 bonus will be paid automatically.
- There’s no need to apply, and it won’t affect your existing benefits.
- On your bank statement, it will usually appear as “DWP XB.”
- The payment is completely tax-free.
Why the Bonus Has Sparked Criticism
Originally introduced in 1972, the bonus amount has remained unchanged for decades. While there was a temporary increase to £70 in 2008 during the financial crisis, it was quickly reduced back to £10 the following year. Many have criticised the DWP, saying the static value of the bonus feels like an “insult” amid rising living costs.
The DWP Christmas Bonus continues to offer symbolic financial support during the festive season to those receiving certain benefits. While the £10 amount hasn’t increased in decades, it’s still a welcome addition for many low-income individuals and families. With automatic payment, simple eligibility rules, and no application required, checking whether you qualify could be worthwhile—especially as no impact on other benefits or taxes is involved.
FAQs
Do I need to apply for the £10 DWP Christmas Bonus?
No. The bonus is issued automatically to individuals who meet the qualifying conditions during the designated week.
Will receiving the Christmas bonus affect my other benefits or taxes?
No, the payment is tax-free and has no impact on any other benefits you receive.
What if I live abroad—can I still receive the bonus?
You may still qualify if you reside in the EEA, Switzerland, Gibraltar, Isle of Man, or Channel Islands during the qualifying week, provided other conditions are met.