Nearly 24 million people across Great Britain are claiming at least one benefit from the Department for Work and Pensions (DWP). However, many may not know about an annual bonus paid to some claimants before Christmas. The DWP ‘Christmas Bonus’ is a one-off, tax-free payment of £10 made to people in receipt of certain benefits, not including Universal Credit. Payments will be issued automatically before January 1, 2026.

Those on the State Pension, PIP, devolved Scottish disability benefits, Attendance Allowance, Carer’s Allowance – 23 benefits in total – will receive the money automatically before Christmas. However, they need to meet the eligibility criteria during a specific qualifying period, which is typically the first full week in December. 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.

The extra payment usually shows as ‘DWP XB’ on bank statements and online accounts, but the exact code to look out for nearer the time should be confirmed. Nobody needs to apply for the £10 as it should automatically go into the account where you usually receive your benefit payment or State Pension.

The £10 Christmas Bonus was introduced by Ted Heath’s Conservative Government in 1972. However, as the Daily Record reports, it has not been uprated or increased since it launched, and in today’s money, it would be worth around £118.

To qualify, you must be present or ‘ordinarily resident’ in the UK, Channel Islands or Isle of Man, Gibraltar, during the qualifying week of December 1 – 7 (to be confirmed).

The DWP will write to eligible claimants advising them that they will be receiving the £10 bonus in December, but this note sometimes arrives after the payment has been made.

You must also get at least one of the following benefits in 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