DWP bonus payment this year for millions who claim PIP and State Pension

Millions of people on benefits will receive a modest cash uplift before the new year rings in.

Nearly 24 million individuals across the UK are currently claiming at least one benefit from the Department for Work and Pensions (DWP). This figure includes 13 million pensioners receiving State Pension payments, 5.7 million on Universal Credit, and 3.7 million Personal Independence Payment (PIP) claimants.

However, many people, including those newly eligible for the State Pension, may not be aware of an annual bonus paid to claimants on certain benefits before Christmas. It comes on the back of news that the DWP is paying up to £749.80 every month to people with stomach issues.

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The DWP 'Christmas Bonus' is a one-off, tax-free payment of £10 made to people in receipt of certain benefits - but not Universal Credit.

Those on the State Pension, PIP, Attendance Allowance and Carer's Allowance will automatically receive the money before Christmas - if they meet the eligibility criteria during a specific qualifying period, typically the first full week in December, reports Chronicle Live.

It's worth noting the DWP will issue this as a separate payment, independent of your scheduled State Pension or benefit payment, so it may arrive on a different day, reports the Daily Record.

Nobody needs to apply for the additional £10 as it should automatically appear in the account where you normally receive your benefit payment or State Pension. It typically appears as 'DWP XB' on bank statements and online accounts.

The £10 Christmas Bonus was introduced by Ted Heath's Conservative Government in 1972. It hasn't seen an increase since its inception over five decades ago and in today's money, it would be worth approximately £118 - when calculated using the composite price index published by the UK Office for National Statistics (ONS).

Who's eligible for the £10 Christmas Bonus?

To qualify for the Christmas Bonus you must live or be an 'ordinarily resident' in the UK, Channel Islands, Isle of Man, or Gibraltar, during the qualifying week of December 1 - 7 (to be confirmed).

The DWP will get in touch with eligible claimants to inform them that they will receive the £10 bonus in December, although this correspondence sometimes arrives after the payment has been processed.

Qualifying benefits

You must also be receiving at least one of the following benefits in the qualifying week:

• Mobility Supplement
• Industrial Death Benefit (for widows or widowers)
• Pension Credit - the guarantee element
• Child Disability Payment (Scotland only)
• Pension Age Disability Payment (Scotland only)
• Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
• Personal Independence Payment (PIP)
• Armed Forces Independence Payment
• Severe Disablement Allowance (transitionally protected)
• Disability Living Allowance
• Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
• War Disablement Pension at State Pension age
• War Widow’s Pension
• State Pension (including Graduated Retirement Benefit)
• Incapacity Benefit at the long-term rate
• Widowed Mother’s Allowance
• Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
• Carer Support Payment (Scotland only)
• Carer’s Allowance
• Attendance Allowance
• Adult Disability Payment (Scotland only)
• Widow’s Pension
• Widowed Parent’s Allowance

Not everyone over State Pension age will receive the payment. DWP guidance on GOV.UK states: "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."

The DWP has clarified that if you're part of a married couple, in a civil partnership or living together as though you are, and both of you receive one of the qualifying benefits, you will each be entitled to a £10 Christmas Bonus payment.

Even if your partner or civil partner doesn't receive one of the qualifying benefits, they may still be eligible for the Christmas Bonus if certain conditions are met:

• 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

Additional criteria must also be met:

• You are entitled to an increase of a qualifying benefit for your partner or civil partner
• the only qualifying benefit you are getting is Pension Credit

Claiming process

You don't need to apply for the Christmas Bonus - it should be automatically credited. More information about the Christmas Bonus can be found on GOV.UK.