Millions in state pension and other benefits due | Personal Finance | Finance

Across the UK, around 22.7 million people are entitled to at least one benefit from the Department for Work and Pensions (DWP). This includes almost 12.7 million older people who receive a state pension. This contributory benefit is only available to people of pensionable age who have paid national insurance contributions for at least 10 years.

However, many, including new pensioners, may not be aware that there is an annual bonus paid before Christmas to recipients of certain benefits which could come in handy during the colder months. The 'Christmas bonus' is a one-off, tax-free payment of £10 to people in receipt of a state pension or certain other benefits such as Personal Independence Payment (PIP), Attendance Allowance and Carer's Allowance – if they meet the eligibility criteria during a specific eligibility period, usually the first full week of December.

Although 22 benefits are eligible for the £10 payment, around 6.7 million people claiming Universal Credit are not entitled to it.

Please note that the DWP will make this payment as a separate payment, separate from your scheduled state pension or benefit payment, so it may arrive on a different day.

You don't need to claim the extra £10 as it will be automatically paid into the account you normally receive your benefits or state pension from. It will appear as 'DWP XB' on bank statements and online accounts.

The £10 Christmas bonus, a relic of Ted Heath's Conservative government in 1972, has remained unchanged since it was introduced over 50 years ago. Although originally more significant, its value has declined with inflation; today it is equivalent to around £115, according to the UK Office for National Statistics' (ONS) composite price index.

Who can claim the £10 Christmas bonus?

Eligibility for the £10 Christmas bonus is clear: applicants must be present or 'ordinarily resident' in the UK, Channel Islands, Isle of Man or Gibraltar during the qualifying week. For this year, the expected qualifying period is 2-8 December 2024.

Notification of eligibility and payment will be made directly by the DWP, who will inform eligible recipients of their bonus in December. However, it is not uncommon for this information to reach recipients after the bonus has already been paid.

Eligibility requirements for benefits

To be eligible for the bonus, applicants must receive at least one of the benefits from a list during the qualifying week.

• Adult Disability Payment (Scotland only)
• Independence payment of the armed forces
• Care allowance
• Need for care
• Carer Support Payment (Scotland only)
• Child Disability Payment (Scotland only)
• Permanent care allowance (paid under the occupational accident or war pension scheme)
• Contributory Employment and Support Allowance (once the main phase of the benefit begins after the first 13 weeks of entitlement)
• Disabled life support
• Disability pension at 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 old-age pension)
• Severely disabled person’s allowance (temporarily protected)
• Unemployment allowance or benefit (paid under the occupational accident or war pension scheme)
• War disability pension at statutory retirement age
• War widows pension
• Widow’s pension for mothers
• Widow’s pension for parents
• Widow’s pension

The DWP's guidance on GOV.UK clears up a potential misunderstanding for pensioners by pointing out: “If you have not claimed your state pension and are not entitled to any of the other qualifying benefits, you will not receive a Christmas bonus.”

There are also regulations within this program for married couples or couples living together, as well as for couples in a registered civil partnership.

The DWP's guidelines state that you are each entitled to a £10 Christmas bonus payment if you are married, in a civil partnership or living together as if you were, and you are both in receipt of one of the qualifying benefits.

If your partner or life partner does not receive any of the qualifying benefits, he or she may still be entitled to the Christmas bonus if both of the following apply:

• You both exceeded the statutory retirement age at the end of the qualifying week
• Your partner or civil partner was also present (or was ‘ordinarily resident’) in the United Kingdom, the Channel Islands, the Isle of Man, Gibraltar, a European Economic Area (EEA) country or Switzerland during the qualifying week.

In addition, one of the following points must apply:

How to apply

You don't need to claim the Christmas Bonus – it should be credited to you automatically. You can find out more about the Christmas Bonus here on GOV.UK.