As autumn sets in, millions of households across the UK receiving Universal Credit and other eligible benefits are gearing up to receive a £300 cost-of-living payment. However, that’s not the only bonus in store for them, as the Department for Work and Pensions (DWP) has revealed details of the Christmas bonus scheduled for eligible households this winter.
While the Christmas bonus may only amount to £10, it comes as a welcome addition, and the best part is that it doesn’t need to be repaid and will not affect any other benefits recipients may be entitled to.
Who Qualifies for the DWP Christmas Bonus?
To qualify for the DWP Christmas bonus, individuals must be in receipt of one of the following benefits, along with Universal Credit, during the qualifying week, typically the first week of December:
- 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 guaranteed 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
Recipients must also reside in one of six areas to qualify for the bonus: the UK, the Channel Islands, the Isle of Man, Gibraltar, Switzerland, or any other European Economic Area (EEA) country.
When Will the DWP Christmas Bonus Payment Be Made?
The DWP Christmas bonus will be paid automatically, so there’s no need to make a claim. Payments will be made before Christmas and will be deposited directly into the same bank account where benefit payments are regularly received. Recipients can identify the payment by checking their bank statements for “DWP XB” or a similar reference over the festive period.
Additional Cost-of-Living Payments
In addition to the Christmas bonus, the DWP has also announced cost-of-living payments of £300 for eligible households. These payments, scheduled for October 31, are the second of three payments totaling up to £900 for individuals on means-tested benefits such as Universal Credit, Pension Credit, or tax credits for the year 2023/24. HM Revenue and Customs (HMRC) will make £300 payments to individuals who are only claiming tax credits and do not qualify for a DWP payment. These payments will be disbursed between November 10 and 19.
Notably, these payments are tax-free, do not count toward the benefit cap, and do not affect existing benefit awards. To be eligible, individuals must have been entitled to a qualifying benefit between August 18 and September 17, or for an assessment period ending within these dates. For those receiving payments through tax credits, eligibility is based on having received tax credits for at least one day between August 18 and September 17.
Overall, the DWP’s Christmas bonus and cost-of-living payments aim to provide financial support to millions of eligible households during the upcoming winter season.
