DWP to Issue One-Time £10 Payment to Eligible Benefit Recipients by Year-End

Nearly 24 million people in the UK are currently supported by at least one benefit from the Department for Work and Pensions (DWP).

This includes around 13 million pensioners claiming the State Pension, 5.7 million individuals on Universal Credit, and 3.7 million receiving Personal Independence Payment (PIP).

The Little-Known £10 Christmas Bonus

Each year, before Christmas, certain benefit claimants receive a one-off, tax-free bonus of £10. While the payment is modest, it has become a long-standing tradition.

The Christmas Bonus is available to those on specific benefits such as the State Pension, PIP, Attendance Allowance, Carer’s Allowance, and devolved Scottish disability benefits. However, Universal Credit claimants are not eligible.

Payment Process

• The bonus is issued separately from regular benefit or pension payments.
• It will appear in your bank account under the reference ‘DWP XB’.
• There is no application required—payments are made automatically if you qualify during the first full week of December.

History of the Christmas Bonus

The £10 bonus was introduced in 1972 by Edward Heath’s Conservative Government. Despite over five decades passing, the payment has never been increased. Adjusted for inflation, the bonus would now equal roughly £118 according to ONS data.

Who Is Eligible?

To qualify, claimants must:

• Be ordinarily resident in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week (December 1–7).
• Be receiving at least one of the 23 qualifying benefits.

Full List of Qualifying Benefits

• Armed Forces Independence Payment
• Attendance Allowance
• Carer’s Allowance
• Carer Support Payment (Scotland only)
• Child Disability Payment (Scotland only)
• Constant Attendance Allowance (Industrial Injuries/War Pensions)
• Contribution-based Employment and Support Allowance (main phase)
• Disability Living Allowance
• Incapacity Benefit (long-term rate)
• Industrial Death Benefit
• Mobility Supplement
• Pension Age Disability Payment (Scotland only)
• Pension Credit (Guarantee element)
• Personal Independence Payment (PIP)
• State Pension (including Graduated Retirement Benefit)
• Severe Disablement Allowance
• Unemployability Supplement or Allowance (Industrial Injuries/War Pensions)
• War Disablement Pension (State Pension age)
• War Widow’s Pension
• Widowed Mother’s Allowance
• Widowed Parent’s Allowance
• Widow’s Pension

Important: Not everyone over State Pension age qualifies. If you have not claimed your State Pension and do not receive another eligible benefit, you will not receive the bonus.

Married Couples and Civil Partnerships

Couples where both partners receive a qualifying benefit will each get the £10 payment. If only one partner qualifies, the other may still receive it if:

• Both are over State Pension age by the end of the qualifying week.
• Both were ordinarily resident in the UK, Channel Islands, Isle of Man, Gibraltar, EEA, or Switzerland during the qualifying week.
• One of the following applies:
  • You are entitled to a benefit increase for your partner.
  • The only benefit you receive is Pension Credit.

How to Claim

The Christmas Bonus requires no claim—it is paid automatically to eligible individuals. The DWP may send letters confirming eligibility, though in some cases, the payment arrives before official notice.

The DWP Christmas Bonus may only be £10, but it remains a valued tradition for millions of pensioners and benefit recipients each year. Automatically issued in early December, it offers a small seasonal boost during the holiday period.

While the payment amount has not changed since its introduction in 1972, its presence continues to remind claimants that their contributions and circumstances are acknowledged.

FAQs