The Department for Work and Pensions (DWP) has said there are “currently no plans” to revise the arrangements surrounding the annual £10 Christmas Bonus which has been paid to millions of benefit claimants since it was launched by Ted Heath’s Conservative Government in 1972.
The Christmas Bonus is a tax-free, lump sum payment made to people of State Pension age and those in receipt of certain benefits. It has not been uprated or increased since it was introduced five decades ago and in today’s money, it would be worth around £168 - when calculated under the composite price index published by the UK Office for National Statistics (ONS).
A composite index is created by combining price data from several different published sources, both official and unofficial. The Consumer Price Index (CPI), normally used to calculate inflation, has only been tracked since 1988.
In a written question, Independent MP Jonathan Edwards asked the DWP what assessment it has made of the potential merits of “ensuring that the annual Christmas Bonus to recipients of benefits is increased in line with inflation?”
DWP Minister Laura Trott MP responded: “The Christmas Bonus is an annual, tax-free, lump sum payment to pensioners and to working age people who are in receipt of certain qualifying benefits during the relevant week which is usually the first full week in December.
“The bonus was initially introduced as a one-off payment of £10 in 1972 and has not been uprated or increased on a yearly basis.
“The Government remains committed to providing support to pensioners and others who receive the payments and has no current plans to revise the arrangements.”
Eligibility for the DWP £10 Christmas Bonus 2023
To qualify for the Christmas Bonus in 2023 you must be living in the UK, Channel Islands, Isle of Man, Gibraltar, any European Economic Area (EEA) country, or Switzerland during the qualifying week, which is usually the first full week of December.
You must also get at least one of the following benefits in the qualifying week:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Child Disability Payment
- Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
- Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
- Disability Living Allowance
- Incapacity Benefit at the long-term rate
- Industrial Death Benefit (for widows or widowers)
- Mobility Supplement
- Pension Credit - the guarantee element
- Personal Independence Payment (PIP)
- State Pension (including Graduated Retirement Benefit)
- Severe Disablement Allowance (transitionally protected)
- Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
- War Disablement Pension at State Pension age
- War Widow’s Pension
- Widowed Mother’s Allowance
- Widowed Parent’s Allowance
- Widow’s Pension
Not everyone over State Pension age will get the payment, DWP explains: “If you have not claimed your State Pension and are not entitled to one of the other qualifying benefits you will not get a Christmas Bonus.”
If you’re part of a married couple, in a civil partnership or living together and you both get one of the qualifying benefits you will each get a Christmas Bonus payment.
How to claim
You do not need to claim the £10 Christmas Bonus - you should get it automatically.
If you think you should have received the payment for Christmas 2022, contact the Jobcentre Plus office that deals with your payments or the Pension Service.
Find out more about the Christmas Bonus on GOV.UK here.
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