Millions of individuals who receive specific benefits are set to get an extra payment in a few weeks. The Department for Work and Pensions (DWP) issues an annual Christmas bonus of £10, typically disbursed in the initial full week of December but sometimes arriving as late as January.
Automatic eligibility for this bonus is granted to beneficiaries of benefits like Attendance Allowance, Pension Credit, and Personal Independence Payment. To receive the Christmas bonus, one must be receiving a qualifying benefit during the designated week in December.
Residents of the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week are eligible for the bonus. In the case of married couples, civil partners, or cohabiting individuals claiming benefits, both parties may receive the bonus.
The payment, labeled as “DWP XB” on bank statements, is tax-free and does not impact other benefits. Even if one partner does not receive a qualifying benefit, they may still be eligible under specific conditions.
Established in 1972, the Christmas bonus has faced criticism for not being permanently increased since its inception. Although briefly raised to £70 in 2008 during the financial crisis, it was reverted to £10 the following year.