Government urged to give millions £165 Christmas Bonus | Personal Finance | Finance

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An online petition, signed by over 20,600 individuals, is urging the UK Government to adjust the annual £10 Christmas Bonus payment in line with inflation. The tax-free bonus, which has been given to millions of benefit recipients since its introduction by Ted Heath’s Conservative Government in 1972, has not seen an increase in over five decades.

The Department for Work and Pensions (DWP) provides this payment to those receiving State Pension or certain other benefits such as Personal Independence Payment (PIP), Attendance Allowance and Carer’s Allowance – provided they meet the eligibility criteria during a specific qualifying period, usually the first full week in December. In today’s terms, it would be worth £165.36, according to the composite price index published by the UK Office for National Statistics (ONS).

Despite the petition being launched nearly a year ago on Change.org by Shona McMahon when the Conservatives were still in power, around 20,248 people have backed the proposal (at the time of writing), reports the Daily Record. Ms McMahon argues: « Christmas is THE most expensive time of year! Pensioners, the vulnerable and people like myself, disabled, could do with an extra boost at this time of year, especially as the energy assistance has been axed. »

She further added: « It was shocking to learn that the ‘£10 Christmas Bonus’ has been the same for OVER FIVE DECADES!! »

A DWP spokesperson emphasised the urgency of its corrective measures by stating: « We are taking immediate action to turn around the dire inheritance we face – with more people living in poverty now than 14 years ago.

« This includes extending the Household Support Fund for the most vulnerable, kickstarting work to develop a strategy to reduce child poverty, and taking the first steps towards delivering a genuine living wage for working people. »

The department also announced that a £10 Christmas Bonus will be issued to eligible recipients; however, the 6.7 million on Universal Credit won’t qualify.

While the bonus will be made as a separate payment from regular State Pension or benefits, there’s no need to apply; it should automatically land in the same account and will show up as ‘DWP XB’ on bank statements.

Claimants must be ordinarily resident within certain regions during the first week of December to be eligible, and the DWP is expected to alert eligible claimants about the December bonus, possibly after the payment.

To qualify, you must be receiving at least one of a list of 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 (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 (Scotland only)
  • Pension Credit – the guarantee 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