Nearly 24 million individuals in the United Kingdom are presently receiving benefits from the Department for Work and Pensions (DWP). This includes retirees collecting State Pension, as well as recipients of Universal Credit and Personal Independence Payment (PIP).
However, a significant number of these beneficiaries, particularly those newly qualifying for State Pension or individuals on disability support, may not be informed about an annual bonus given to certain claimants before the holiday season.
Known as the DWP ‘Christmas Bonus,’ this tax-free one-time payment is automatically disbursed to eligible benefit recipients, typically before January 1, 2026. The government grants a £10 bonus to 24 different claimants, usually during the first full week of December, as long as they meet the specified criteria.
It is essential to understand that the Christmas Bonus is issued separately from regular benefit or pension payments, potentially arriving on a different date than expected. The payment will be deposited directly into the recipient’s account, appearing as ‘DWP XB’ on bank statements or online banking platforms.
Introduced by Ted Heath’s Conservative Government in 1972, the £10 Christmas Bonus has remained unchanged for over five decades. Adjusted for inflation, it would be equivalent to about £118 in today’s terms based on the composite price index from the UK Office for National Statistics (ONS).
To qualify for the Christmas Bonus, individuals must be present in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week of December 1 – 7. Eligible claimants will receive notification from the DWP regarding the bonus, although the actual payment may arrive after the notification.
Certain criteria must be met to receive the Christmas Bonus, including being eligible for specific benefits during the designated week. The DWP specifies that individuals not claiming State Pension or not entitled to other qualifying benefits will not receive the bonus. Moreover, if both partners in a couple receive qualifying benefits, each is entitled to a separate £10 payment.
If one partner does not receive qualifying benefits, they may still be eligible for the Christmas Bonus under specific conditions. The DWP guidance provides detailed information on eligibility and entitlement to the bonus.