Nearly 24 million individuals in the United Kingdom are presently receiving benefits from the Department for Work and Pensions (DWP). This encompasses pensioners collecting State Pension payments, as well as individuals on Universal Credit and Personal Independence Payment (PIP).
Many of these beneficiaries, including those newly qualified for the State Pension or those receiving disability benefits, may not be informed about an annual gratuity given to specific claimants before the Christmas season.
The DWP’s ‘Christmas Bonus’ is a one-time, tax-free sum provided to individuals receiving certain benefits. Typically dispensed automatically before January 1st, 2026, this £10 bonus is allocated to 24 different recipients meeting the eligibility requirements during a specified period, usually the initial full week of December.
It is crucial to understand that the DWP issues this bonus as a distinct payment, separate from regular State Pension or benefit disbursements, potentially arriving on a different date. Claimants need not apply for the additional £10, as it should be automatically credited to their usual benefit payment or State Pension account, appearing as ‘DWP XB’ on banking statements.
Introduced in 1972 by Ted Heath’s Conservative Government, the £10 Christmas Bonus has remained unchanged for over five decades. Adjusted for inflation using the composite price index from the UK Office for National Statistics (ONS), it would now be valued around £118.
To qualify for the Christmas Bonus, individuals must be physically present or ‘ordinarily resident’ in specific regions during the qualifying week of December 1-7 (dates to be confirmed). The DWP communicates with eligible recipients, indicating the forthcoming £10 bonus payment, which sometimes arrives post-payment.
Not every individual above State Pension age will receive this bonus, as per DWP guidance on GOV.UK. For those in partnerships where both partners receive qualifying benefits, each is eligible for the £10 Christmas Bonus. If one partner does not receive a qualifying benefit, they may still qualify under specific conditions.
