MILLIONS on benefits and Universal Credit will get extra payment before the end of the year.
The free cash, often referred to as the benefits Christmas bonus, is paid to eligible households to help provide extra financial support over the holiday period.
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The bonus was first introduced in 1972 and hasn’t risen in value since then.
If the payment had risen in line with inflation it would now be worth £118.69, which would be enough to cover the cost of a Christmas shop for the family.
However, £10 these days doesn’t stretch very far, and would likely only cover the cost of a few items in a grocery store.
Sarah Coles, head of personal finance at Hargreaves Lansdown, said the figure has fallen so far behind inflation that it’s “now the kind of sum that the kids of better off families might find tucked into a Christmas card”.
“If you’re facing Christmas on a tight budget, the earlier you can start preparing for it, the better.”
She added: “Some people will buy presents throughout the year, whereas others will put something aside each month into an easy access savings account.”
“It’s not always easy to free up the cash, but you’ll be glad you managed it when you’re faced with the eye-watering cost of Christmas.”
Meanwhile, Evan John, Policy Advisor at the national disability charity Sense, said the bonus is “another example of successive governments demonstrating they don’t really understand the huge extra costs of being disabled”.
He added: “The cost of living has spiralled for disabled people over recent years.
“Many have no choice but to use extra energy to power feeding machines or hoists – and energy costs have risen in recent years, alongside the ever-increasing prices of specialist foods and therapies.”
A Government spokesperson said: “This Government is determined to change people’s lives for the better, helping them out of poverty so they do not need to rely on crisis support.
“That’s why we are fixing the broken welfare system we inherited, so it genuinely supports those who can work into employment while ensuring there is always a safety net for the most vulnerable.
“We have also raised the national living wage, increased benefits, and given additional help to the poorest households as part of our Plan for Change.”
How do I claim the DWP Christmas bonus?
Anyone who is eligible to claim the bonus does not need to apply and will be paid automatically.
If you are not sure if you have received the payment before, check on your bank statements for a code which says “DWP XB”.
To get the money you usually need to be claiming benefits before the qualifying week, which is typically the first week of December.
The full list of benefits which make you eligible for the bonus include:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Carer Support Payment
- 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 Age Disability Payment
- Pension Credit – the guarantee element
- Personal Independence Payment (PIP)
- Scottish Adult Disability Living Allowance (SADLA)
- 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
If you think that you qualify but don’t receive the payment automatically you should contact your local Jobcentre Plus or Pension Centre.
Support if you are struggling
If you are struggling there are ways to get financial support.
For example, cash-strapped families can get access to money through the Household Support Fund (HSF).
The scheme has been extended multiple times with the latest round running between April 2025 and March 2026.
Each council in England has been allocated a share of the £742million fund and can distribute it to residents in need.
Eligibility criteria varies based on where you live but usually help is offered to those on benefits or a low income.
For example, households in North Northamptonshire can apply for supermarket vouchers worth up to £320.
Elsewhere, households in Wealden District Council can apply for free cash worth £200.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us’ benefits calculator works out what you could get.
Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.
You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
