The Department for Work and Pensions (DWP) is set to issue a welcome financial boost to millions of people across the country within the coming days.
What is the DWP Christmas Bonus?
This annual payment is a tax-free £10 bonus designed to provide a small bit of extra support during the festive season. The payment is automatic, so eligible individuals do not need to apply.
It will typically appear in bank statements as 'DWP XB' and crucially, receiving it does not affect any other benefits you may be claiming.
Who is Eligible for the Payment?
To qualify for the bonus, you must be present or 'ordinarily resident' in the UK, Channel Islands, Isle of Man, or Gibraltar during what is known as the 'qualifying week'. This is usually the first full week of December.
Furthermore, you must be receiving one of a number of specified benefits during that week. The full list of qualifying benefits includes:
- State Pension
- Carer's Allowance
- Disability Living Allowance
- Personal Independence Payment (PIP)
- Attendance Allowance
- Pension Credit
- Adult Disability Payment
- Armed Forces Independence Payment
If you are part of a couple, both you and your partner may be eligible for the separate £10 payment if you are both claiming a qualifying benefit.
A Brief History of the Christmas Bonus
The DWP Christmas bonus has a long history, having been introduced in 1972. There was a significant, albeit temporary, increase in 2008 when the payment was raised to £70 to help people during the financial crash. However, the following year it reverted to its standard £10 amount, where it has remained since.
While the payment is normally made in December, the DWP notes that in some cases it can take until January for the funds to arrive in accounts, so claimants are advised to be patient if they do not see it immediately.
