Will the DWP increase its Christmas bonus? Update revealed

DWP Christmas bonus

As of this moment, over 20,000 individuals have added their names to the petition requesting a raise. They believe that, given the rising cost of living and the fact that benefits like the winter fuel payment are reaching fewer recipients, an increase is essential at this time.

DWP Christmas bonus - Figure 1
Photo Evening Standard

"Christmas can be the most costly time of year," stated Shona McMahon, the person behind the petition. "Older adults, those in difficult situations, and individuals like me who have disabilities could really benefit from some extra support during this season, especially since energy assistance has been cut."

A spokesperson from the DWP stated, “We understand that Christmas can put a strain on people’s finances, which is why we distribute benefits to many individuals sooner than normal, making it easier for them to get ready for the holiday season.”

"Our aim is to assist individuals throughout the entire year with a new system that provides improved personalized support for both those who are unemployed and those who are working but earning low wages."

The Department for Work and Pensions is a government agency tasked with managing welfare and pension programs, which provide assistance to individuals in need.

They stated, "We are acting swiftly to address the serious situation we are dealing with—currently, more individuals are experiencing poverty than they were 14 years ago."

"This involves prolonging the Household Support Fund to assist the most at-risk individuals, initiating efforts to create a plan aimed at reducing child poverty, and making initial moves toward providing a true living wage for employees."

Nonetheless, the spokesperson did not confirm whether the Christmas bonus would be raised.

For over fifty years, pensioners, those in need, and caregivers receiving the benefit have been given a £10 bonus each Christmas as a token of appreciation.

Many people were surprised to find out that the Christmas bonus has not changed in the last fifty years. One advocate even remarked that it has become "almost worthless."

In 2023, a petition was started, calling for an urgent boost of over £100 to the Christmas bonus to keep up with inflation. Nearly a year later, the petition continues to gain more signatures as individuals urge the Labour party to take action.

Here’s what you should understand.

Individuals receiving the benefits mentioned in this list are eligible for the payment. It will be processed automatically for those who qualify and should show up in their bank accounts with the reference DWP XB.

What Were The Trends In Previous Years?

The payment was established in 1972 and has generally stayed unchanged for nearly five decades. It saw a temporary increase to £70 in 2008 due to the financial crisis, but that adjustment did not last.

Labour's Take On DWP Christmas Bonus

Although the statement recognizes the problem, Labour has not mentioned whether there will be an increase in the DWP Christmas bonus.

Earlier this year, Liz Kendall, the Secretary of State for Work and Pensions, shared Labour's strategy to motivate individuals to go back to work rather than depending on government assistance.

In September, when asked about the recent reductions to the winter fuel payment, Business Secretary Jonathan Reynolds stated, "We have no alternative." He brushed aside concerns that the cuts might lead to people suffering or even dying from the cold this winter.

He mentioned: "We're working to instill confidence in people by highlighting that the state pension has increased compared to last winter, while energy costs are also lower than they were last year."

The Standard reached out to the Department for Work and Pensions for a statement.

What’s The Purpose Of The Petition?

The petition calls on the government to raise the Christmas bonus so that it keeps pace with inflation.

The petition organizers estimate that this amount would have been approximately £113.18 in 2023. With this year’s inflation, the bonus is expected to reach around £130.

“This isn't about requesting 'another handout,'" the petition states. "It's for those of us who don't have any opportunity to make extra income."

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