Millions of individuals who qualify for specific benefits are set to receive an extra payment in the coming weeks. The Department for Work and Pensions (DWP) issues a yearly £10 Christmas bonus, typically disbursed in the initial full week of December but might extend up to January.
Automatic eligibility for the 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 any of these benefits during the “qualifying week,” usually the first full week of December.
Residency in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week is a prerequisite to receive the bonus. In cases of married couples, civil partnerships, or cohabitating partners both claiming benefits, each individual may be entitled to the Christmas 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 qualifying benefits, they may still qualify for the bonus by meeting specific criteria.
Introduced by the DWP in 1972, the Christmas bonus has faced criticism for its stagnant £10 amount since inception. While briefly increased to £70 in 2008 to aid during the financial crisis, it was reduced back to £10 the subsequent year.