The Department for Work and Pensions will automatically send a £10 tax-free Christmas Bonus to over 6 million eligible claimants before December 25, 2025 — a payment that hasn’t increased in real value since 1972. While the amount remains stubbornly fixed, the cost of heating, groceries, and winter essentials has soared, making the £10 bonus feel more like a symbolic gesture than meaningful support. The payment, which arrives with the reference ‘DWP XB’ on bank statements, is designed for those receiving one of 24 qualifying benefits during the first full week of December — known as the ‘qualifying week.’
Who Gets the Bonus — and Who Doesn’t?
Eligibility hinges on receiving at least one of the listed benefits during the qualifying week and being ‘ordinarily resident’ in the UK, Channel Islands, Isle of Man, or Gibraltar. The full list includes State Pension, Personal Independence Payment (PIP), Carer’s Allowance, Disability Living Allowance, Attendance Allowance, and several disability and war pensions. But here’s the twist: if you’re on Universal Credit — the most common welfare payment today — you’re out of luck. That’s right. Millions of low-income households relying on Universal Credit won’t get a penny, even though many are struggling more than ever.
That exclusion has drawn quiet outrage from charities. ‘It’s a policy stuck in the 1970s,’ said a spokesperson for Turn2us, a poverty charity. ‘The DWP’s own data shows over 40% of households on Universal Credit are cutting back on food and heating. Yet the system ignores them entirely for this one-off payment.’
How It Works — And Why It’s Confusing
You don’t apply. You don’t even need to remember the date. If you qualify, the money drops into your account automatically — usually between December 10 and 18, depending on your usual payment schedule. The DWP says it’s designed to be simple. But reality is messier.
For couples: if both partners receive qualifying benefits — say, one gets State Pension and the other gets PIP — each gets £10. That’s £20 total. But if one person gets two qualifying benefits — like PIP and Carer’s Allowance — they still get only one £10 payment. And if you’ve been overpaid in the past? The DWP won’t claw it back. But if you get two bonuses by mistake? You’re told to contact your local Jobcentre Plus office. No details on what happens next.
And then there’s the timing. Last year, payments due on Christmas Day were moved to Christmas Eve. The same pattern is expected in 2025. If your regular payment lands on December 25 or 26, expect it on December 24. That’s not guaranteed — the DWP usually confirms this only in early December — but it’s become a winter tradition.
The £10 That Lost £100
Since 1972, inflation has turned £10 into roughly £90 in today’s money — meaning the real value of the bonus has dropped by more than 90%. Adjusted for cost of living, it should be £110. Instead, it’s still £10. No official reason has been given for the freeze. No minister has publicly defended it. The DWP’s website simply states: ‘The Christmas Bonus has been £10 since 1972.’
That silence speaks volumes. In 2023, National World reported that families could receive up to £1,085 in total DWP payments by Christmas — a figure that includes housing benefit, child tax credits, and other payments. The Christmas Bonus? A rounding error. Yet it’s the only one branded as a ‘bonus.’
Advocates say the refusal to increase it reflects a broader neglect. ‘It’s not just about the money,’ said Dr. Lena Foster, a social policy researcher at The Institute for Fiscal Studies. ‘It’s about recognition. For decades, this payment signaled that the state saw those on benefits as part of the community. Now, it feels like an afterthought.’
What Happens Next?
There are no signs the government plans to raise the bonus in 2025. The next budget is months away, and welfare reforms are sidelined by other priorities. But pressure is building. In October, 14 MPs from across parties signed a cross-party letter urging the Chancellor to restore the bonus to its real value. A petition on Change.org has gathered over 120,000 signatures.
Meanwhile, local food banks are bracing for another tough winter. ‘We see people who get the bonus come in the next day,’ said Mary O’Connor, who runs a food bank in Newcastle. ‘They say, ‘It’s not enough, but it’s something.’ That’s heartbreaking.’
For now, the DWP will keep paying. Millions will get their £10. And the system will keep running — unchanged, unchallenged, and increasingly out of step with the lives it’s meant to support.
Frequently Asked Questions
Who is excluded from the Christmas Bonus, and why?
People receiving Universal Credit as a standalone benefit are excluded, even though they make up the largest group of welfare recipients. The DWP’s eligibility rules date back to a pre-Universal Credit system, and the bonus was never updated to include it. This exclusion affects over 5 million households, according to 2024 DWP statistics, and has drawn criticism for ignoring those most affected by the cost-of-living crisis.
Can I get the bonus if I receive multiple qualifying benefits?
No. Even if you qualify through two or more benefits — like PIP and Attendance Allowance — you’ll receive only one £10 payment. The DWP explicitly states that duplicate payments are not allowed. If you accidentally receive two, you must contact your Jobcentre Plus office. This rule often confuses claimants, especially those who’ve been on benefits for years and assume more support means more money.
When will the Christmas Bonus be paid in 2025?
The payment typically arrives between December 10 and 18, but if your regular benefit payment is due on Christmas Day (December 25) or Boxing Day (December 26), it will likely be moved to Christmas Eve (December 24), as it has been in recent years. The DWP usually confirms this schedule in early December. Payments appear on bank statements as ‘DWP XB’ or ‘XB’.
Does the Christmas Bonus affect other benefits?
No. The £10 payment is tax-free and doesn’t count as income when calculating other benefits like Housing Benefit, Council Tax Reduction, or Universal Credit. This means you can receive it without risking a reduction in your other support. The DWP confirms this on GOV.UK, making it one of the few welfare payments that truly adds to your total without penalty.
Why hasn’t the bonus increased since 1972?
No official reason has ever been given. The payment was introduced in 1972 as a one-off £10 gesture, and it was never indexed to inflation. Successive governments have maintained it as a symbolic tradition rather than a financial lifeline. Advocates argue it reflects a decline in political will to support low-income households, while the DWP cites budget constraints and the need to prioritize larger, recurring payments.
How do I know if I’m eligible?
Check if you receive any of the 24 qualifying benefits during the first full week of December — typically December 1–7 in 2025. Benefits include State Pension, PIP, Carer’s Allowance, and several disability and war pensions. If you’re unsure, call the DWP helpline or check your most recent award letter. You don’t need to apply — if you qualify, you’ll get it automatically.
