DWP urged to increase ‘stagnant’ Christmas bonus for benefit claimants to over £100
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This winter, many individuals receiving benefits will be getting the DWP Christmas bonus, which aims to provide financial assistance during the holiday season.
The yearly payment of £10 is automatically issued before Christmas, but it’s only available to individuals who receive certain qualifying benefits. Some of these benefits include carer’s allowance, personal independence payment (PIP), and pension credit. However, if someone is only receiving universal credit on its own, they won’t qualify for this payment.
There is a growing call for the government to increase the bonus, with thousands of people signing a petition to update the payment to better reflect today's requirements.
A digital petition calling for a raise in payments has gained over 15,000 signatures. It calls on the Department for Work and Pensions (DWP) to evaluate raising the payment to match inflation, highlighting that the current amount of £10 has stayed the same since 1972.
If this one-time bonus had been adjusted for inflation over the past 52 years, it would now be £114.75, based on Bank of England statistics. However, adjusting it according to the most recent inflation rates would only bring it up to £10.22.
Initially introduced last year, the petition has attracted thousands of additional supporters as winter approaches and concerns escalate. Shona McMahon, the creator of the petition, believes that the payment should be adjusted annually to account for inflation following an initial increase.
“She emphasizes that this isn't simply a request for another handout. It’s about those of us who don’t have the opportunity to make any additional income.”
The heightened focus on the initiative coincides with the expected rise in energy costs this winter due to Ofgem's new price cap. Alongside Labour's contentious reduction of the Winter Fuel Payment for seniors, numerous experts are cautioning that this winter could pose significant challenges for the nation's most at-risk individuals.
Martin Lewis has called on the government to reconsider its plan to means-test the cold weather benefit. He cautions that this year, many pensioners are expected to face greater financial difficulties.
He mentioned that due to the removal of the £300 cost-of-living support for each household and the adjustments in who qualifies for winter fuel payments, which range from £200 to £300, some individuals might find themselves up to £600 worse off compared to last winter.
Starting in April, all beneficiaries will experience a 1.7 percent annual increase as payments adjust to keep pace with inflation.
The Department for Work and Pensions has confirmed that there will be no alterations to the Christmas bonus this year. A representative stated, “We are swiftly addressing the serious challenges we’re facing, as more individuals are living in poverty now compared to 14 years ago.”
"This involves extending the Household Support Fund to help those in greatest need, initiating efforts to create a plan aimed at lowering child poverty, and making initial progress toward providing a true living wage for employees."
