Millions of pensioners, as well as those in receipt of benefits including Carer's Allowance and PIP, will receive a bonus cash payment from the Department for Work and Pensions (DWP) this week.

As millions of Britons prepare for the festive season, the annual £10 Christmas bonus from the DWP is now being distributed to eligible benefit claimants.

Introduced in 1972, this one-off payment offers a small financial boost to those receiving certain benefits, including state pensions, during the first full week of December.

While the bonus is automatic for most, many may not realise they qualify or how to identify it on their bank statements.

Pension experts from Spencer Churchill Claims Advice said: "The £10 Christmas bonus, while modest, is a longstanding tradition that provides a small but welcome boost to pensioners and benefit claimants during the festive season.

"For many, it’s a gesture of recognition from the government during a time when financial pressures can feel overwhelming.

"The Christmas bonus serves as a token of support for some of the most financially vulnerable households.

"However, it’s important to remember that this payment has remained unchanged since 1972, despite significant rises in the cost of living, meaning its real value has diminished over time.

""We urge individuals to check their eligibility for the Christmas bonus, especially those receiving benefits such as Pension Credit or Personal Independence Payment.

"While Universal Credit claimants aren’t included, those on multiple qualifying benefits may still be entitled to receive the payment.

"If you're eligible, you should see the payment listed as 'DWP XB' in your bank account. This simple check ensures you’re receiving the financial support you’re entitled to this December.

"While the Christmas bonus is a positive initiative, there’s a clear case for revisiting its value. A £10 payment, unchanged for over 50 years, doesn’t go as far as it once did. Updating this figure to reflect inflation would make a more meaningful impact on the lives of those who rely on it."

Who is eligible for the DWP Christmas bonus?

To be eligible for the payment, you must be receiving one of the following benefits along with Universal Credit.

You will need to be receiving the relevant benefits in qualifying week, which will most likely be the first week of December.

A full list of eligible benefits includes:

  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • 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 guaranteed 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

To qualify for the payment, as well as receiving one of the above benefits, you will also need to be a resident of one of six areas.

To receive the Christmas bonus you will have to live in the UK, the Channel Islands, the Isle of Man, Gibraltar, Switzerland or any other European Economic Area (EEA).