As the festive season approaches, the Department for Work and Pensions (DWP) is once again handing out its annual Christmas Bonus, a small, tax-free payment to help certain benefit claimants with the extra costs of the holidays.
The one-off £10 payment may not seem like much in today’s economy, but it’s a long-standing gesture that thousands across the UK rely on, especially as energy bills, food prices, and living costs remain high.
The DWP Christmas Bonus is a £10 tax-free payment that lands in eligible claimants’ bank accounts in early December, offering a little extra support over the festive period. It’s paid automatically but only to those on specific benefits.
What is the DWP Christmas Bonus and How Does it Work?
The Christmas Bonus is a government-funded payment made to individuals receiving certain benefits. It’s been in place since the early 70s, but the amount has stayed stuck at £10 for over five decades.
You won’t need to apply for it. If you qualify, it will show up in your bank account automatically, usually under the reference ‘DWP XB’ or just ‘XB’.
According to official guidance: “The Christmas Bonus is a one-off tax-free £10 payment made before Christmas, paid to people who get certain benefits in the qualifying week. This is normally the first full week of December. You do not need to claim – you should get paid automatically.”
But crucially, Universal Credit on its own doesn’t count. If that’s the only benefit you’re receiving, unfortunately, you’re not eligible.
Full List of Benefits That Qualify for the 2025 Christmas Bonus
You must be ordinarily resident in the UK, Channel Islands, Isle of Man or Gibraltar and receiving at least one of the following during the qualifying week:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Carer Support Payment
- Child Disability Payment
- Constant Attendance Allowance (under Industrial Injuries or War Pensions)
- Contribution-based ESA (main phase)
- Disability Living Allowance
- Incapacity Benefit (long-term rate)
- Industrial Death Benefit
- Mobility Supplement
- Pension Age Disability Payment
- Pension Credit – guarantee element
- Personal Independence Payment (PIP)
- Scottish Adult Disability Living Allowance (SADLA)
- Severe Disablement Allowance (transitionally protected)
- State Pension (including Graduated Retirement Benefit)
- Unemployability Supplement or Allowance
- War Disablement Pension (at State Pension age)
- War Widow’s Pension
- Widowed Mother’s Allowance
- Widowed Parents’ Allowance
- Widow’s Pension
Couples living together, married, or in a civil partnership can each get the bonus — but only if both are on a qualifying benefit in that week.
Why Hasn’t the Christmas Bonus Increased Since 1972?
The bonus has remained unchanged since 1972, and that hasn’t gone unnoticed. In today’s money, £10 is worth far less, and there have been repeated calls for it to rise. So far, the government hasn’t budged.
Adjusted for inflation, the £10 payment in 1972 would be worth over £130 today. But no increases are planned for now.
When Will December 2025 DWP Payments Be Made?
The holiday season can mess with payment schedules. If your benefit payment is due on:
- Thursday 25 December (Christmas Day) or
- Friday 26 December (Boxing Day)
…it’s likely to arrive early, on Wednesday 24 December (Christmas Eve) instead.
This follows the same pattern as previous years, although official confirmation is expected in early December.
While £10 may not stretch far these days, the Christmas Bonus is still a welcome gesture for many who rely on state support. For now, the amount remains static, but with growing pressure and public scrutiny, it remains to be seen whether the government will revisit it in the future.
In the meantime, make sure your benefits are in order by early December to secure the bonus and keep an eye on DWP updates as Christmas approaches.
