DWP's £10 Tax-Free Christmas Bonus for Millions on Benefits
DWP's £10 Tax-Free Christmas Bonus Announced

The Department for Work and Pensions (DWP) has officially announced the return of its annual Christmas Bonus, providing a welcome financial boost for millions of benefits claimants across the UK. This one-off, tax-free payment is designed to offer a small measure of support during the festive season.

What is the Christmas Bonus and Who Qualifies?

The bonus is a one-off, tax-free £10 payment issued to individuals receiving certain state benefits. The key detail for recipients is that you do not need to make a claim; the payment should be made automatically directly into your bank account.

The payment is scheduled to be made before Christmas, with the qualifying week typically being the first full week of December. When the payment arrives, it will usually be identifiable in bank statements with the reference 'XB' or 'DWP XB'.

Full List of Qualifying Benefits

Eligibility for the £10 payment is extended to individuals receiving any of the following benefits during the qualifying week:

  • Adult Disability Payment
  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • Carer Support Payment
  • Child Disability Payment
  • Constant Attendance Allowance
  • Contribution-based Employment and Support Allowance (after the first 13 weeks)
  • Disability Living Allowance
  • Incapacity Benefit at the long-term rate
  • Industrial Death Benefit
  • Mobility Supplement
  • Pension Age Disability Payment
  • Pension Credit (the guarantee element)
  • Personal Independence Payment (PIP)
  • Scottish Adult Disability Living Allowance (SADLA)
  • Severe Disablement Allowance
  • State Pension (including Graduated Retirement Benefit)
  • Unemployability Supplement or Allowance
  • War Disablement Pension at State Pension age
  • War Widow’s Pension
  • Widowed Mother’s Allowance
  • Widowed Parent’s Allowance
  • Widow’s Pension

Payment Rules for Couples and Partners

The DWP has also clarified the rules for couples. If both partners in a marriage or civil partnership individually receive a qualifying benefit, each will get their own £10 Christmas Bonus.

Furthermore, if only one partner receives a qualifying benefit, the other may still be eligible provided both are over the State Pension age by the end of the qualifying week and meet residency requirements. This is contingent on the claimant being entitled to an increase for their partner on a qualifying benefit like Pension Credit.

This initiative, confirmed under the current Labour Party government, continues a long-standing tradition of providing this small, automatic payment to support vulnerable households and pensioners during the Christmas period.