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What is the DWP Christmas bonus and when is it paid?
The annual payment returns this winter as millions prepare for December payouts
The Department for Work and Pensions (DWP) will make its annual Christmas bonus payment this December to state pensioners and people receiving certain benefits.
The £10 payment has been made every year since the early 1970s, though its value has remained unchanged for more than five decades.
Here we explain how the bonus works, who qualifies, how it is paid and how the payment fits into wider benefit support.
How much is the DWP Christmas Bonus?
The bonus is a one-off, tax-free £10 payment. It was introduced in 1972 under the Pensioners’ and Family Income Supplement Payments Act and was designed to offer a little extra support during the festive period.
Although the cost of living has risen substantially over the years, the value of the payment has not changed. The only exception was in 2008, when the Labour government temporarily increased the bonus to £70 as part of a wider package responding to the financial crisis.
Today, the £10 amount is worth considerably less in real terms. Using the Bank of England’s inflation calculator, its value would stand at £119.12 if it had increased in line with prices between 1972 and September 2025 – a rise of more than 1,090%.
Historical figures also highlight the shift: when the bonus began, £10 represented 148% of the weekly state pension (£6.75). In contrast, the full new state pension now pays £230.25 a week, meaning the bonus is equivalent to 4.3% of that amount.
- Find out more: how much is the state pension?
Who qualifies for the Christmas Bonus?
You’ll receive the payment automatically if you live, or are ‘ordinarily resident’, in the UK, Channel Islands, Isle of Man or Gibraltar and receive the state pension or one of 22 qualifying benefits during the relevant week.
This is usually the first week of December.
Universal Credit is not one of the qualifying benefits.
- 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
If you’ve deferred your state pension and do not receive any other qualifying benefit, you won’t receive the bonus.
Couples may each receive the payment if both claim a qualifying benefit.
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 the 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 to get the bonus.
Find out more: over 60s benefits
When will the bonus be paid?
Payments begin from Monday 1 December. Everyone eligible should receive their bonus before Christmas.
The payment is made automatically into the bank account where your usual state pension or benefits are paid and normally appears on statements as DWP XB.
If you believe you should have received the payment but haven’t, you should contact the Jobcentre Plus office that handles your benefit or the Pension Service
How much does the bonus cost?
When the scheme launched in 1972, total spending was £81m. Expenditure reached £179m in 2023 and is forecast to rise to £185 this year.
Current projections suggest this will increase to around £197m by 2029, even with the payment remaining fixed at £10.
Debate around the bonus has focused on whether the frozen value still provides meaningful support and whether the funds could be used differently.
Over recent years, several petitions have called for reform or an increase. However, the Government has consistently said there are no plans to change the amount or eligibility rules.
On the payment this year, a DWP said: ‘The Christmas bonus is a long-standing, annual, payment to pensioners and to working-age people who are in receipt of certain qualifying benefits during the relevant week.
'As part of our plan for change we’re shifting our focus from welfare to work, skills, opportunities, so living standards are boosted and more people move out of poverty.'
- Find out more: 4 retirement regrets and how to avoid them
What do Which? members think?
When we asked our Which? Members Facebook group for their thoughts on the Christmas bonus, many told us they felt the payment has lost much of its impact over time, while others shared ideas for how it could work better today.
Which? member John said the bonus was introduced at a time of high inflation and that his mother had received it alongside a Widow’s Pension. He explained: 'At that time £10 was the equivalent of around £160 today and it made a difference to people like her bringing up a family alone. It has never been increased, so nowadays? Scrap it and use the money for something more meaningful.'
Some members also questioned whether the cost of administering the payment still stacks up. Which? member Mike said it should only go to those 'who really need it' rather than to all pensioners.
Pat felt the amount should be enough to buy a Christmas dinner at the supermarket, suggesting a figure closer to £50.
However, not everyone agreed the bonus has lost its value. Which? member William said the payment still helps people, even in its current form, noting: 'It’s £10 they wouldn’t have had otherwise, so it will buy £10 worth of food, £10 worth of electric, £10 towards bus fares to get to essential places, £10 to be able to get something for loved ones at Christmas – yes, £10 does benefit people.'
