The Department of Work and Pensions (DWP) has responded to a public petition demanding an increase of the £10 Christmas bonus to £165.
At the time of writing, more than 20,000 people have signed the petition calling for the increase. They argue that with living costs increasing and benefits such as the winter fuel payment being limited to fewer people, an increase is needed now more than ever.
"Christmas is THE most expensive time of the year,” said the petition's initiator, Shona McMahon. “Pensioners, the vulnerable and people like myself, disabled, could do with an extra boost at this time of year, especially as the energy assistance has been axed."
A DWP representative responded: “We know that Christmas is a time when people stretch their budgets, which is why we pay many people their benefits earlier than usual, helping them prepare for the festive period.
“We’re focused on supporting people year-round through a new system which offers better personalised support for people out of work as well as those in work on a low income.”
They added: "We are taking immediate action to turn around the dire inheritance we face — with more people living in poverty now than 14 years ago.
"This includes extending the Household Support Fund for the most vulnerable, kickstarting work to develop a strategy to reduce child poverty and taking the first steps towards delivering a genuine living wage for working people."
However, the representative did not say if the Christmas bonus would be increased.
For more than half a century, pensioners, vulnerable people and carers who receive the benefit have been offered a one-off £10 bonus every Christmas as a gesture of goodwill.
However, many were shocked to learn that the Christmas bonus had remained the same over the past five decades, with one supporter saying it is now “practically worthless”.
The petition was launched in 2023 urging an immediate increase of more than £100 in the Christmas bonus, aligned with inflation. Almost a year later, the number of signatures on the petition is still growing as people call on Labour to act.
Given the recent vote to axe the winter fuel payment for some pensioners, where exactly does Labour stand on the Christmas bonus?
Here’s what you need to know.
What is the DWP Christmas bonus?
The Government website says the Christmas bonus is “a one-off tax-free £10 payment made before Christmas, paid to people who get certain benefits in the qualifying week. This is normally the first full week of December.”
People on the benefits listed here qualify for the payment, which will automatically be made to those who qualify and should appear in their bank account alongside the reference DWP XB.
How much has it been in previous years?
The payment was introduced in 1972 and has remained the same for most of the last 50 years. It was increased in 2008 to £70 because of the financial crash but this was temporary.
What has Labour said about the DWP Christmas bonus?
Despite the statement above acknowledging the issue, Labour has not said whether the DWP Christmas bonus will be increased.
Earlier this year, Liz Kendall, the work and pensions secretary, outlined Labour’s plans to encourage people to return to work instead of relying on state benefits.
When pressed in September about recent cuts to the winter fuel payment, Business Secretary Jonathan Reynolds said: “We have no choice.” He dismissed fears that some people could die of the cold this winter as a result of the cut.
He added: “We are making sure that we can reassure people by saying the state pension is higher than last winter and energy bills are lower than last winter.”
The Standard approached the DWP for comment.
What is the petition for?
The petition urges the Government to increase the Christmas bonus to match inflation.
According to the petition organisers’ calculations, this would have been equivalent to £113.18 in 2023. This year, inflation would take the bonus to an estimated £130.
“This isn’t asking for ‘just another handout’,” the petition says. “This is for those of us that don’t have an option to earn anything extra.”
