DWP urged to hike Christmas Bonus to over £100 for benefit claimants as Winter Fuel Payments axed
DWP urged to hike Christmas Bonus to over £100
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The Department for Work and Pensions (DWP) is facing mounting pressure to increase its annual Christmas bonus for benefit claimants.
The tax-free £10 payment, introduced in 1972 by Ted Heath's Conservative Government, has remained unchanged for over five decades.
Typically paid in the first week of December, the bonus is given to those receiving certain benefits.
Benefits include state pension, Personal Independence Payment (PIP), and Attendance Allowance, Carer’s Allowance, Child Disability Payment and Pension Credit - the guarantee element.
Eligibility for the Christmas bonus requires recipients of these certain benefits to be present or 'ordinarily resident' in the UK, Channel Islands, Isle of Man, or Gibraltar during the qualifying week, expected to be December 2 - 8, 2024.
An online petition calling for the bonus to be increased in line with inflation has garnered significant support, with over 15,000 signatures.
The tax-free £10 payment, has remained unchanged for over five decades
PAThe petition argues that if adjusted for inflation, the £10 sum would be worth £114.75 today, based on Bank of England data.
The petition, started by Shona McMahon, argues that those eligible are in need of this extra boost during the winter season.
McMahon said: "Christmas is THE most expensive time of year! Pensioners, the vulnerable & people like myself, disabled, could do with an extra boost at this time of year, especially as the energy assistance has been axed.
“This isn’t asking for ‘just another handout, this is for those of us that don’t have an option to earn anything extra.”
The campaign has gained traction as winter approaches, with many facing increased financial pressures.
Energy bills are set to rise due to Ofgem's price cap increase, and the £300 Winter Fuel Payment has been withdrawn for around 10 millions pensioners.
Martin Lewis, the money saving expert has urged the Government to reconsider means-testing the Winter Fuel Payment for pensioners as some households could be up to £600 worse off compared to last winter.
Not everyone over state pension age will get the £10 Christmas payment. DWP guidance on GOV.UK said: “If you have not claimed your state pension and are not entitled to one of the other qualifying benefits you will not get a Christmas Bonus.”
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Despite its modest amount, the bous remains a welcome gesture for many during the festive season. The payment appears as 'DWP XB' on bank statements
The Christmas bonus is automatically paid to eligible claimants, with no need to apply.
While the £10 bonus remains unchanged, other benefits will see an annual increase in April. Last year, they rose by 6.7 per cent.
The DWP has not yet commented on the petition calling for an increase to the Christmas bonus.
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