John Hughie
In a welcome move amidst rising living costs, the Department for Work and Pensions (DWP) has announced that millions of pensioners and benefit claimants will receive an extra £10 cash bonus this December.
This tax-free Christmas Bonus is designed to provide seasonal financial relief and is automatically paid to those who qualify—no application required.
Let’s break down who qualifies, when it’s paid, and what it means for recipients.
What Is the DWP Christmas Bonus?
The Christmas Bonus is a £10 one-off payment made to eligible individuals receiving certain DWP-administered benefits. Introduced in 1972, this payment is meant to help with seasonal expenses and bring a bit of financial cheer during the festive period.
Although the value has remained the same for decades—aside from a brief increase to £70 during the 2008 financial crisis—it remains a guaranteed annual payment for qualifying claimants.
Who Is Eligible for the £10 Bonus?
To receive the bonus, you must be in receipt of one of the qualifying benefits during the “qualifying week”, typically the first full week of December. Additionally, you must be ordinarily resident in the UK, the Channel Islands, the Isle of Man or Gibraltar during that week.
Qualifying Benefits Include:
| Qualifying Benefit | Notes |
|---|---|
| State Pension | Including Graduated Retirement Benefit |
| Pension Credit | Guarantee element only |
| Personal Independence Payment (PIP) | All levels |
| Attendance Allowance | |
| Carer’s Allowance | |
| Disability Living Allowance (DLA) | |
| Child Disability Payment | |
| Adult Disability Payment | |
| Severe Disablement Allowance | Transitionally protected cases |
| Armed Forces Independence Payment | |
| Constant Attendance Allowance | Under Industrial Injuries or War Pensions schemes |
| Incapacity Benefit (long-term rate) | |
| Contribution-based ESA | Must be in main phase after 13 weeks |
| Unemployability Supplement/Allowance | Paid under Industrial Injuries/War Pension schemes |
| Mobility Supplement | |
| War Disablement Pension | Only if over State Pension age |
| War Widow’s/Widowed Parent’s/Widowed Mother’s Allowance | |
| Widow’s Pension |
Couples: Can Both Partners Get It?
Yes. If both individuals receive a qualifying benefit, each person will get £10. If only one partner qualifies, the other may still receive the bonus if:
- Both are over State Pension age during the qualifying week, and
- Both are ordinarily resident in the UK, the Channel Islands, the Isle of Man, Gibraltar, an EEA country, or Switzerland, and
- The qualifying person is either:
- Receiving Pension Credit, or
- Entitled to an increase in a qualifying benefit for their partner
How Is the Payment Made?
The Christmas Bonus is automatically paid—no need to apply. It typically appears on your bank statement as “DWP XB” and is usually deposited during mid to late December.
- Amount: £10
- Taxable? No
- Effect on Other Benefits? None
This bonus does not count as income and does not affect entitlement to any other benefits, including Universal Credit, Housing Benefit, or Council Tax Support.
Why Is There Controversy Around the Bonus?
While the Christmas Bonus is welcomed, many recipients consider it outdated. Introduced over 50 years ago, the amount has never been permanently increased, despite rising inflation and living costs.
In 2008, during the global recession, the bonus was temporarily raised to £70, but was reduced back to £10 the following year. Critics argue that the current amount is no longer meaningful, especially for those heavily reliant on state support.
However, even at £10, the bonus can make a small but positive impact for many low-income households and those on disability and pension-related benefits.
DWP Christmas Bonus 2025
| Category | Details |
|---|---|
| Bonus Amount | £10 |
| Payment Period | December 2025 |
| How It Appears in Bank Account | “DWP XB” |
| Taxable | No |
| Impact on Other Benefits | None |
| Application Needed? | No – Paid Automatically |
| Residence Requirement | UK, Channel Islands, Isle of Man, Gibraltar, EEA, Switzerland |
| Introduced | 1972 |
The DWP Christmas Bonus 2025 is a small but meaningful gesture aimed at supporting millions of UK pensioners and disability benefit claimants. While its value has remained unchanged for decades, the bonus can still provide a little financial breathing room during an otherwise expensive time of year.
With automatic payments, zero tax, and no effect on other benefits, this £10 bonus is something all eligible recipients should welcome. And for those planning their winter budgets, it’s a helpful reminder to check that you’re receiving all the benefits you’re entitled to.
FAQs
Do I need to apply for the DWP Christmas Bonus?
No, the bonus is paid automatically to anyone receiving a qualifying benefit during the first full week of December.
Will this bonus affect my other benefits?
No. The £10 bonus is tax-free and does not affect other benefits or payments in any way.
Can my spouse and me receive the bonus?
Yes, if you both receive a qualifying benefit, you’ll each receive £10. If only one of you qualifies, special rules may still allow payment to both.
