As millions across the UK celebrated Christmas, a specific five-letter code began appearing on the bank statements of many benefit claimants. The Department for Work and Pensions (DWP) confirmed this identifier relates to the annual one-off £10 Christmas Bonus payment, dispatched to eligible households in December.
Decoding the 'DWP XB' Transaction
The payment, which is designed as a small festive support, appears on recipients' bank statements as 'DWP XB'. This code simply stands for 'DWP Christmas Bonus'. It is a tax-free payment that does not affect any other benefits an individual receives, meaning it will not reduce regular Universal Credit, Pension Credit, or other allowance amounts.
All standard benefits, pensions, and allowances are paid directly into a nominated account. The Christmas Bonus follows the same method, landing in accounts alongside other December payments. If someone believes they should have received the bonus but cannot see the transaction, they are advised to contact the Jobcentre Plus office handling their payments or the Pension Service.
Who Qualifies for the DWP Christmas Bonus?
Eligibility for the £10 payment hinges on two key criteria during what is known as the 'qualifying week', which is typically the first full week of December.
Firstly, the claimant must be present or 'ordinarily resident' in the UK, Channel Islands, Isle of Man, or Gibraltar during that week. Different rules apply for UK nationals living in the European Economic Area (EEA) or Switzerland.
Secondly, and most importantly, the individual must be receiving at least one of a long list of qualifying benefits. The DWP's list includes:
- State Pension (including Graduated Retirement Benefit)
- Pension Credit
- Personal Independence Payment (PIP)
- Adult Disability Payment
- Disability Living Allowance
- Attendance Allowance
- Carer’s Allowance
- Contribution-based Employment and Support Allowance (after the initial 13-week assessment phase)
- Incapacity Benefit at the long-term rate
- Industrial Death Benefit
- War Widow’s Pension
- and several other disability and widow-related allowances.
If you are not claiming your State Pension and are not entitled to any other qualifying benefit, you will not receive the Christmas Bonus. Those who receive more than one qualifying benefit will only get one £10 bonus payment.
What to Do If You Have Questions
The payment is automatic for those who meet the criteria, so no claim is necessary. Its primary purpose is to provide a small, additional financial gesture during the festive period without impacting a household's overall benefit entitlement.
For anyone unsure about their eligibility or who cannot locate the payment, the direct line is to speak with the office that manages their primary benefit. With the payment now made, checking bank statements for the 'DWP XB' code is the quickest way for eligible claimants to confirm they have received this annual support.
