The Department for Work and Pensions (DWP) has responded to mounting pressure from more than 20,600 people who signed a petition demanding an increase in the Christmas bonus payment from £10 to £165.
The bonus, which has remained unchanged since its introduction in 1972, is paid to millions of people on benefits across the UK.
Campaigners are calling for the payment to be significantly increased to reflect decades of inflation, particularly as many recipients face growing financial pressures during the festive season.
The DWP explained it is now "taking immediate action" to address concerns about poverty levels.
Shona McMahon, the petition creator highlighted the severe financial strain that those on benefits go through during the festive period, especially after cuts to Winter Fuel Payments.
She said: "Christmas is THE most expensive time of the 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."
The Department outlined several measures being implemented to address these concerns
GETTY"It was shocking to learn that the '£10 Christmas Bonus' has been the same for over five decades."
In response to the petition, a DWP spokesman said: "We are taking immediate action to turn around the dire inheritance we face - with more people living in poverty now than 14 years ago."
The Department outlined several measures being implemented to address these concerns.
These include "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 spokesman added.
The response comes as campaigners continue to press for an increase in the festive payment.
Another petition prior highlighted the clear impact of inflation on the Christmas bonus since its introduction in 1972.
The petitioners argue that the current £10 payment is "almost insulting" for those living "hand to mouth" and in fear of benefit reassessment.
When adjusted for inflation, campaigners suggest the bonus should be worth approximately £130 today.
LATEST DEVELOPMENTS:
The petiton read: "The DWP Christmas bonus for benefit claimants is a measly £10 - hardly enough to cover the costs associated with holidays.
"It is almost insulting to be presented with an amount of money this small - the equivalent of 76p before inflation - when many of us are already living hand to mouth and in constant fear of getting our benefits reassessed or revoked. Disabled and low-income people deserve better."
The payment was briefly increased to £70 in 2008 during the financial crash but was reduced back to £10 the following year.
The £10 Christmas bonus is paid automatically to eligible claimants at the start of December, with payments expected by December 31 at the latest.
The tax-free payment appears as "DWP XB" on bank statements and does not affect other benefits.
Recipients must be claiming qualifying benefits during the first full week of December, including State Pension, PIP, Disability Living Allowance, and Carer's Allowance.
Claimants must be present or "ordinarily resident" in the UK, Channel Islands, Isle of Man or Gibraltar during the qualifying week.
Married couples, civil partners, or those living together can both receive the bonus if they meet eligibility criteria.
