The Department for Work and Pensions (DWP) will once again be handing out a Christmas bonus this year.
The DWP Christmas bonus - which is paid in early December - was first introduced as part of the Pensioners’ and Family Income Supplement Payments Act in 1972. The payment aims to help people with added costs during the festive period and millions of people claiming certain benefits and the state pension are eligible for it.
However, over the last few years, the bonus has received much criticism from the general public and charities. Mirror readers have described the payment as a "joke", "pathetic" and "unbelievable". This is because the amount you get from the bonus has remained unchanged since it was first introduced - so here is everything you need to know.
How much is the DWP Christmas Bonus?As mentioned earlier, the one-off, tax-free bonus was first introduced in 1972, which was over 50 years ago now and the rate stood at £10. However, it was a different time back then and £10 got you a lot further than it does today. One Mirror reader said: "Back in 1972 you would be able to splash out on a great Christmas dinner and more with £10. Today, maybe a good box of Xmas crackers."
If the bonus had risen with inflation, it would be worth a hefty £165.36, based on the composite price index from the UK's Office for National Statistics (ONS). There has only been once when the Christmas bonus has increased, under the Labour government in 2008. The rate was temporarily hiked to £70 to support households claiming benefits during the financial crash. However, the next year it was reduced back down to £10 and it as remained at that level ever since.
Is £10 enough to help this winter? Let us know your thoughts: mirror.money.saving@mirror.co.uk
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A large number of Mirror readers believe the rate should be lifted this year particularly as millions of state pensioners have lost their £300 Winter Fuel Payment this year. One Mirror reader said: "As a Labour supporter all my life and one of the many millions of pensioners who have missed out on the winter fuel payment, the pathetic figure of £10 is an insult.
"How on earth is this going to make any difference to my life or the lives of the poor pensioners who have been forgotten and thrown aside? I am sure that certain members of government will be nice and warm this winter, whilst they tuck into their Christmas dinner."
Another said: "It is like a joke. I am going to send my 'bonus' to the PM. Maybe that little amount supports his family during Christmas but I know it won't be able to support mine."
A third Mirror reader added: "In 1997, the winter fuel allowance was introduced, ranging from £100 to £300 depending on criteria. This has again never increased with inflation. Today, it should be £190 to £570, a huge difference again. These allowances were all introduced with the best of intentions at the time but were then ignored by successive governments."
Who can get the Christmas Bonus?The DWP will be paying the bonus to people who live or are "ordinarily resident" in the UK, Channel Islands, Isle of Man or Gibraltar receiving one of the qualifying benefits. A total of 22 benefits are eligible for the £10 payment, however, those claiming Universal Credit, a group that includes 6.7 million people, do not qualify. The eligible benefits include:
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
The DWP says those who haven’t claimed their State Pension - so have deferred it - and are not entitled to one of the other qualifying benefits, will not receive the bonus. If you’re part of a married couple, in a civil partnership or living together as such and you both get one of the qualifying benefits, you will each get a Christmas bonus payment. If your partner or civil partner does not get one of the qualifying benefits, they may still get the Christmas bonus if both of the following apply:
You’re both over State Pension age by the end of the qualifying week
Your partner or civil partner was also present (or ‘ordinarily resident’) in the UK, Channel Islands, Isle of Man, Gibraltar, European Economic Area (EEA) country or Switzerland during the qualifying week
And either:
You’re entitled to an increase of a qualifying benefit for your partner or civil partner
The only qualifying benefit you’re getting is Pension Credit
You will need to be claiming your benefits during the qualifying week in order to get the bonus. This is usually the first full week of December - however, the DWP has not yet confirmed the date. If it is the first week of December, it will fall between Monday, December 2 and Sunday, December 8.
When will I receive the bonus?According to the DWP website, the £10 will arrive in bank accounts before Christmas and those eligible should get it automatically. So you do not need to claim it. It usually is paid into the bank account where you get your normal benefits paid and normally shows up as "DWP XB" on your bank statement.
The DWP hasn't officially given a date for when the Christmas bonus will be paid for this year. However, last year some people started receiving it from the start of December - so it is likely to be around this time again. If you think you are eligible for the bonus but don't get it this year, DWP guidance suggests contacting the Jobcentre Plus office that deals with your payments, or the pension service.
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