DWP to pay millions on PIP and other benefits one-off payment this year

Millions will qualify for the one-off payment

More than 20 million individuals across the UK are currently claiming at least one benefit from the Department for Work and Pensions (DWP). This figure includes nearly 12.7 million elderly people receiving State Pension payments, a contributory benefit only available to those of retirement age with at least 10 years' worth of National Insurance Contributions.

However, many, including some recently retired, may not be aware of an annual bonus paid to those on certain benefits before Christmas, which could prove useful during the colder months. The 'Christmas Bonus' is a one-off, tax-free £10 payment made to people in receipt of State Pension or those claiming certain other benefits including Personal Independence Payment (PIP), Attendance Allowance and Carer's Allowance - if they meet the eligibility criteria during a specific qualifying period, typically the first full week in December.

Yet while some 22 benefits are eligible for the £10 payment, around 6.7 million people claiming Universal Credit do not qualify. It's important to note that the DWP will make this as a separate payment, independent of your scheduled State Pension or benefit payment, so it may arrive on a different day.

No one needs to apply for the extra £10 as it should automatically go into the account where you usually receive your benefit payment or State Pension. It will show as 'DWP XB' on bank statements and online accounts, reports the Daily Record. People in Scotland who are on Adult Disability Payment, Child Disability Payment or Carer Support Payment will also get the payment but it will be from DWP, not Social Security Scotland.

The £10 Christmas Bonus was a brainchild of Ted Heath's Conservative Government back in 1972. However it hasn't seen an increase since its inception more than five decades ago. If the figure was adjusted for inflation using the composite price index from the UK Office for National Statistics (ONS), it would be around £115 today.

Who's in line for the £10 Christmas Bonus?

To be in with a chance, you've got to be present or 'ordinarily resident' in the UK, Channel Islands, Isle of Man, Gibraltar, during the qualifying week. That is likely to be December 2 - 8, 2024 this year with dates finalised later this year.

The DWP will drop a line to those eligible, letting them know to expect the money in December, although sometimes the heads-up comes after the cash has hit bank accounts.

Qualifying benefits

You need to be on at least one of these benefits in the qualifying week:

1. Armed Forces Independence Payment
2. Attendance Allowance
3. Pension Credit - the guarantee element
4. Personal Independence Payment (PIP)
5. Child Disability Payment (Scotland only)
6. Carer Support Payment (Scotland only)
7. Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
8. Disability Living Allowance
9. Mobility Supplement
10. Industrial Death Benefit (for widows or widowers)
11. Widowed Mother’s Allowance
12. Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
13. Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
14. Widowed Parent’s Allowance
15. Incapacity Benefit at the long-term rate
16. Severe Disablement Allowance (transitionally protected)
17. War Disablement Pension at State Pension age
18. Carer’s Allowance
19. Widow’s Pension
20. War Widow’s Pension
21. State Pension (including Graduated Retirement Benefit)
22. Adult Disability Payment (Scotland only)

It's worth noting that not all pensioners will pocket the bonus, as DWP guidance on GOV. UK states: "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."

Married or cohabiting couples or civil partnerships

The DWP guidance explains that if you're part of a married couple, in a civil partnership or living together as if you are and you both get one of the qualifying benefits you will each get a £10 Christmas Bonus payment.

If your partner or civil partner does not get one of the qualifying benefits, they may still get the Christmas Bonus if both the following apply:

• you’re both over State Pension age by the end of the qualifying week
• your partner or civil partner was also present (or ‘ordinarily resident’) in the UK, Channel Islands, Isle of Man, Gibraltar, European Economic Area (EEA) country or Switzerland during the qualifying week

One of the following must also apply:

• You are entitled to an increase of a qualifying benefit for your partner or civil partner
• the only qualifying benefit you are getting is Pension Credit

Making a claim

You do not need to claim the Christmas Bonus - you should get it automatically. Find out more about the Christmas Bonus on GOV.UK here.