People on State Pension and benefits due one-off payment before end of year – here is how much you will get
HOUSEHOLDS claiming the State Pension and other benefits should be aware of a one-off payment due before the end of the year.
The Department for Work and Pensions Christmas Bonus is a one-off tax-free payment which is paid before December 25.
If you meet the eligiblity criteria the cash bonus is usually paid directly into your account meaning you do not need to apply.
The money should go into your usual account and might show up as ‘DWP XB’ on your statement.
To qualify for the bonus you must be a resident of UK, Channel Islands, Isle of Man or Gibraltar during the qualifying week.
This is usually the first full week of December.
You must also be claiming one of the following benefits:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Carer Support Payment
- Child Disability Payment
- 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 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
However, the DWP State Retirement Age but have not claimed your state pension, for instance, because you are deferring it, then you won’t get the free cash.
How much will you get?
If you meet the criteria then the DWP will pay you £10 this Christmas.
It is not exactly clear when the money will appear, but the DWP does say that if you think you should get it and the money hasn’t come through by January 1, you must contact your local Jobcentre Plus office.
If you are over retirement age then you should contact the Pension Service.
It is also worth noting that payment is calculated per individual, which means that if more than one adult in the household is eligible, they’ll each get a £10 payment.
Even if your partner or civil partner does not get one of the qualifying benefits, they may still get the Christmas Bonus if they reach state pension age by the end of the qualifying week.
However, you must be entitled to an increase of a qualifying benefit for your partner or civil partner, or the only qualifying benefit you’re getting must be Pension Credit.
How to check your eligibility?
For those who are unsure if they can get access to the bonus, you can use an online benefits calculator.
These are free-to-use online tools which can be accessed at a number of websites.
For example, charity Turn2Us’ has a benefits calculator that works out what you could get.
History of the Christmas bonus
THE Christmas bonus was first introduced in 1972.
Initially set at £10, the bonus was intended to help with the additional costs that come with Christmas, such as gifts and festive meals.
Despite inflation and the rising cost of living over the decades, the amount of the Christmas bonus has remained unchanged since its inception.
If the payment had risen in line with inflation, it would now be worth a bumper £114.95 – enough to cover the cost of a big shop for the family.
While the value of £10 has significantly diminished over the years, the Christmas Bonus continues to be a small but welcome addition to many people’s incomes during the holiday period.
Entitledto also has a free calculator that determines whether you qualify for various benefits, including tax credits and Universal Credit.
You can also use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
If you do not want to use an online calculator there are other options available.
For example, you can also check with a local benefits adviser to find out what you could be entitled to.
The website advicelocal.uk lets you enter your post code and informs you of your nearest adviser and how you can contact them.
For example if you enter on the website that you live in Wandsworth, London it will give you the details of the nearest support in the area.
In this instance, it was the borough’s local Age UK and Citizens Advice.
You should be aware that many organisations do not offer an open-door service.
If you are planning to contact an organisation for help or advice you might want to check their website for more information before doing so.