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Millions on benefits have £10 paid into bank account by DWP from TODAY

MILLIONS on benefits are now receiving a £10 payment from the Department for Work and Pensions (DWP).

The free cash, known as the benefits Christmas bonus, is paid to eligible households in December to help with extra costs during the festive season.

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All state pensioners are eligible, irrespective of their income[/caption]

Those receiving one of 21 benefits are eligible for the free cash payment.

That’s as long as you still have an active claim for certain benefits this week (December 2 to December 8).

All state pensioners are eligible, irrespective of their income.

However, if you receive Universal Credit as a stand-alone benefit, you must also receive one of the listed benefits below to be eligible for the bonus:

  • Armed Forces independence payment
  • Attendance allowance
  • Carer’s allowance
  • Child disability payment
  • Constant attendance allowance
  • Contribution-based employment and support allowance
  • 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 
  • Severe disablement allowance
  • Unemployability supplement or allowance
  • War disablement pension
  • War widow’s pension
  • Widowed mother’s allowance
  • Widowed parent’s allowance
  • Widow’s pension

If you are married or live with a partner and are both receiving one of the benefits listed above, you’ll both be eligible for the Christmas bonus.

If you’re in line for the cash boost, you should check your bank statements for the following code “DWP XB”.

So if you see a £10 payment in your bank account accompanied by this code, you know it’s the Christmas bonus.

History of the Xmas bonus

The Christmas bonus was first introduced in 1972.

The bonus, initially set at £10, was intended to help with the additional costs associated 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 family shop.

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.

HOW IS IT PAID?

Anyone entitled to the payment doesn’t need to apply, and it will be paid automatically.

As it’s a bonus, it doesn’t need to be repaid and won’t affect any other benefits you receive.

You’ll get it paid into the same bank account where you usually receive your benefit payments.

But it’s worth watching your account to ensure you received it this month.

The payment should appear on your bank statement as “DWP XB”.

All payments should arrive by December 24 at the very latest.

However, if you think you qualify but don’t receive the payment automatically, contact your local Jobcentre Plus or Pension Centre.

STATE PENSION LOOPHOLE

You could still get the £10 bonus if you have just reached the state pension age by the end of the qualifying week.

One of you must claim a qualifying benefit, such as the state pension and/or pension credit.

You will also need to be aged 66 or above by the start of December.

So, for example, a retired husband may claim pension credit, and his wife may not, but his claim makes them both eligible for the bonus.

However, you will not get the money paid out separately – instead, a total of £20 will be paid in one account.

And bear in mind that your partner who is claiming must also be entitled to an increase in their qualifying benefit.

For example, you can be entitled to an increase in pension credit if you start living with your partner.

The benefit tops up your weekly income to £213 if you’re single or your joint weekly income to £332.95 if you have a partner.

If an increase in benefit is paid for an adult partner, that should be shown on the benefit award letters sent out annually or when the benefit was first claimed.

It usually says something like “extra amount paid for your partner” and gives a figure.

If the benefit is pension credit, the award letter will say something like “amount for you and your partner”.

Are you missing out on benefits?

YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to

Charity Turn2Us’ benefits calculator works out what you could get.

Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.

MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.

You can 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.

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