The Department for Work and Pensions (DWP) has confirmed that the annual Christmas bonus will be available to millions of eligible individuals in December 2025. This automatic tax-free payment, valued at £10, is set to be deposited into bank accounts during the first week of December, specifically targeting those on qualifying state benefits.
Since its inception in 1972, the Christmas bonus has remained fixed at £10, despite inflationary pressures. To put this into perspective, £10 in 1972 would be equivalent to approximately £165 today. The payment is aimed at individuals receiving the state pension or those claiming specific benefits, with eligibility determined during the qualifying week from December 1 to December 7.
The DWP has made it clear that there is no need for individuals to apply for the bonus. It will automatically be credited to the account where their pension or other benefits are paid, with a payment reference of ‘DWP XB’ or ‘XB’.
Eligibility Criteria for the Christmas Bonus
To qualify for the Christmas bonus, individuals must be present or “ordinarily resident” in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week. It is important to note that not every individual over state pension age will receive the payment. The DWP specifies that individuals who have not claimed their state pension and do not qualify for other benefits will not be eligible for the bonus.
For couples, if both partners are eligible, they will each receive the £10 bonus. If one partner does not qualify for the benefits, they may still receive the bonus if both individuals meet specific criteria: they must be over state pension age by the end of the qualifying week and both must have been present in the qualifying regions during that time.
List of Eligible Benefits
To receive the Christmas bonus, individuals must be receiving at least one of the following benefits during the qualifying week:
– Adult Disability Payment (Scotland only)
– Armed Forces Independence Payment
– Attendance Allowance
– Carer’s Allowance
– Carer Support Payment (Scotland only)
– Child Disability Payment (Scotland only)
– Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
– Contribution-based Employment and Support Allowance (after the initial 13 weeks)
– Disability Living Allowance
– Incapacity Benefit at the long-term rate
– Industrial Death Benefit (for widows or widowers)
– Mobility Supplement
– Pension Age Disability Payment (Scotland only)
– Pension Credit (guarantee element)
– Personal Independence Payment (PIP)
– Severe Disablement Allowance (transitionally protected)
– State Pension (including Graduated Retirement Benefit)
– 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
As the date for the Christmas bonus approaches, it is noteworthy that payments scheduled to occur on December 25 or December 26 will instead be made on December 24. These adjustments, which reflect typical practices in previous years, are still subject to final confirmation by the DWP, typically announced in December.
Critics have argued that the bonus should be increased to better reflect current inflation rates, emphasizing the economic pressures faced by many recipients. As the Autumn Budget approaches on November 26, 2025, announced by Rachel Reeves, there is speculation about potential tax increases, which may impact future welfare funding.
For ongoing updates regarding the Christmas bonus and other financial matters, individuals are encouraged to stay informed through official DWP communications and reputable news sources.
