Nearly 24 million individuals throughout the UK are currently receiving at least one benefit administered by the Department for Work and Pensions (DWP). This includes around 13 million retirees drawing a State Pension, 5.7 million claiming Universal Credit, and 3.7 million receiving Personal Independence Payment (PIP).
As the holiday season approaches, many may be unaware that a £10 tax-free Christmas Bonus is distributed annually to certain benefit recipients — a tradition that remains unchanged since its inception in 1972 under the Ted Heath government.
What Is the DWP Christmas Bonus?
The DWP Christmas Bonus is a one-time, tax-free payment of £10 given to eligible claimants of select benefits. This bonus is separate from any scheduled benefit payments and is not issued to Universal Credit claimants.
This seasonal payment is automatically deposited before Christmas to those who meet the eligibility criteria during a specific qualifying week, typically the first full week of December. The payment will appear separately in your bank account and often shows as ‘DWP XB’ on your statement.
Do You Need to Apply?
No application is necessary. The £10 bonus is paid automatically into the same bank account where you usually receive your benefit or State Pension.
The DWP will notify eligible recipients by letter, although in some cases, this letter might arrive after the payment has been made.
Eligibility Criteria for the Christmas Bonus
To receive the Christmas Bonus, claimants must satisfy the following conditions during the qualifying week:
Residency Requirements
You must be physically present or ordinarily resident in one of the following locations:
- United Kingdom
- Channel Islands
- Isle of Man
- Gibraltar
(Some EEA countries and Switzerland may be considered in specific partnership cases)
You Must Receive at Least One of These Benefits:
| Qualifying Benefit | Notes |
|---|---|
| Adult Disability Payment (Scotland) | |
| Armed Forces Independence Payment | |
| Attendance Allowance | |
| Carer’s Allowance | |
| Carer Support Payment (Scotland) | |
| Child Disability Payment (Scotland) | |
| Constant Attendance Allowance | Under Industrial Injuries or War Pensions schemes |
| Contribution-based ESA (Main phase only) | After 13 weeks |
| Disability Living Allowance | |
| Incapacity Benefit (Long-term rate) | |
| Industrial Death Benefit | For widows or widowers |
| Mobility Supplement | |
| Pension Age Disability Payment (Scotland) | |
| Pension Credit (Guarantee element) | |
| Personal Independence Payment (PIP) | |
| State Pension (Including Graduated Retirement Benefit) | |
| Severe Disablement Allowance | Transitional protection |
| Unemployability Supplement or Allowance | Under Industrial Injuries or War Pensions schemes |
| War Disablement Pension | At State Pension age |
| War Widow’s Pension | |
| Widowed Mother’s/Parent’s/Widow’s Pension |
Special Rules for Couples and Civil Partners
If you are married, in a civil partnership, or cohabiting, and both partners receive a qualifying benefit, each person will get the £10 bonus.
However, if only one partner qualifies, the other may still receive the bonus if all the following apply:
- Both are over State Pension age during the qualifying week.
- Both were ordinarily resident in eligible regions.
- One of these additional criteria is met:
- You receive an increased benefit due to your partner.
- Your only qualifying benefit is Pension Credit.
Historical Context and Value Adjustment
The £10 Christmas Bonus was introduced in 1972, and its value has never increased. When adjusted for inflation using the UK Composite Price Index, that £10 would equate to approximately £118 in today’s money. Despite inflation and rising living costs, the amount has remained unchanged for over five decades.
The DWP Christmas Bonus remains a symbolic yet appreciated gesture for millions relying on government support. While the £10 payment may seem modest by today’s standards, it continues to reflect a tradition of seasonal support for the most vulnerable.
As long as you are receiving one of the qualifying benefits during the designated week in December, you should expect the payment to arrive automatically — no action needed on your part.
FAQs
Will I get the Christmas Bonus if I only receive Universal Credit?
No, Universal Credit is not a qualifying benefit. You must receive at least one of the listed eligible benefits to get the bonus.
Can I still get the Christmas Bonus if I live in the EU or EEA?
You may be eligible if you meet specific residency rules and your benefit includes an increase for your partner or you only receive Pension Credit.
What if I’ve deferred my State Pension? Will I get the bonus?
No, if you have not yet claimed your State Pension and do not receive another qualifying benefit, you will not receive the bonus.