DWP Under Pressure To Lift £10 Christmas Bonus To £118 For Millions
Millions of benefit recipients and Universal Credit claimants could see their modest £10 Christmas bonus upgraded to £118, if inflation-linked reform wins approval.
The annual tax‑free bonus, in place since 1972, has lost its festive cheer as soaring living costs render it tokenistic.
Background: A Bonus Frozen in Time
- Introduced in 1972, the Christmas bonus was designed to offer festive support to vulnerable households.
- Despite inflation, the bonus has remained £10 for over five decades, with only a brief temporary rise in 2008 .
- If uprated to match inflation, the bonus would now equate to approximately £118.69.
Why the Push for £118 Makes Sense
- Sarah Coles, head of personal finance at Hargreaves Lansdown, argues that the current bonus is now more fitting as an insignificant token—“something the kids of better‑off families might find tucked into a Christmas card.”
- Evan John, Policy Advisor at disability charity Sense, highlights that disabled households face steep additional costs—for energy en‑route to power medical devices or specialist foods—making the £10 bonus grossly inadequate.
Who Qualifies and How It’s Paid
| Aspect | Details |
|---|---|
| Payment Amount | Currently £10, proposed increase to £118 |
| Introduced | 1972 |
| Current Value in Real Terms | Around £118.69, adjusted for inflation |
| Automatic Payment | Yes — no application needed |
| Sent in | Early December (qualifying week) |
| Appears as | “DWP XB” on bank statements |
What the Government Says
Despite growing calls for reform, the DWP has not confirmed any increase to the Christmas bonus.
A spokesperson asserts the focus remains on year‑round, personalised support, such as extending the Household Support Fund, boosting minimum wages, and improving benefits overall.
The Household Support Fund is active through March 2026, offering local councils discretion to provide help with supermarket vouchers, cash aid, or other support methods.
Why It Matters This Winter
With energy prices high and festive spending looming, the current £10 bonus barely covers a few items, let alone meaningful festive support.
Raising it to £118 offers a real boost, helping families manage costs, celebrate, or just ease stress during the season’s financial strain.
The humble £10 DWP Christmas bonus is under scrutiny, as voices across the UK demand it’s raised to £118 to align with inflation and actually benefit those in need.
While the government hasn’t confirmed any uprating, pressures are mounting. An update could reshape the festive help people genuinely feel—not just see on paper.
FAQs
Who receives the Christmas bonus?
People on qualifying benefits or Universal Credit during the first full week of December receive it automatically—no application needed.
What would an £118 bonus achieve?
Raising the bonus to £118 would restore its real value per inflation, offering substantive help rather than a token amount.
Is the bonus being increased officially?
As of now, the £10 bonus remains unchanged, but campaigners and budget strain are pushing strongly for inflation-based reform.
