Home Money DWP confirms when millions will receive £10 Christmas bonus – how much it would be worth if it had matched inflation

DWP confirms when millions will receive £10 Christmas bonus – how much it would be worth if it had matched inflation

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Don't spend it all at once: the £10 Christmas bonus will buy you a couple of decent Christmas puddings, but not much more, as their value hasn't risen in decades.

Millions of benefit claimants will receive an annual £10 Christmas bonus from the Department for Work and Pensions (DWP) within days.

Payment will be made in the first week of December to those claiming certain benefits, including Pension Credit and Personal Independence Payment (PIP).

All payments will be made by January 1, 2025, the DWP confirmed.

The £10 Christmas bonus has been paid since 1972.

It has never been increased, apart from one year in 2008, when it was temporarily raised to £70 to help people during the financial crisis.

That £10 bonus in 1972 would have risen to around £184 today if it had kept pace with RPI inflation, This is Money’s inflation calculator shows.

Don’t spend it all at once: the £10 Christmas bonus will buy you a couple of decent Christmas puddings, but not much more, as their value hasn’t risen in decades.

If the £10 had risen with consumer price inflation, which has only officially been the UK’s official measure of inflation since 2003, it would now be worth £115.

The couples can each get a £10 Christmas bonus if they each earn a qualifying benefit.

If you obtain one of the following benefits then you should receive the Christmas bonus in the first week of December:

  • Disability Payment for Adults
  • Armed Forces Independence Payment
  • Assistance Subsidy
  • Carer’s allowance
  • Caregiver support payment
  • Child disability payment
  • Constant attendance allowance (paid for work accidents or war pensions)
  • Contribution-based employment and maintenance subsidy
  • Disability living allowance
  • Disability benefit at long-term rate
  • Industrial Death Benefit (for widows or widowers)
  • Mobility Supplement
  • Disability payment by pension age
  • Pension credit: the guarantee element
  • Personal Independence Payment (PIP)
  • State pension
  • Severe disability allowance
  • Unemployability Supplement or Allowance (paid for work accidents or War Pensions)
  • War disability pension at state pension age
  • War widow’s pension
  • Widowed mother’s allowance
  • Widowed parents allowance
  • Widow’s pension

It is not necessary to claim the bonus, which must be automatically credited to your bank account.

The bonus does not affect any other benefits and is tax-free.

The payment should appear as “DWP XB” on your bank statements.

However, to get the Christmas bonus you have to live or be “ordinarily resident” in the UK, Channel Islands, Isle of Man or Gibraltar during the “qualifying week”, the first week of December.

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