Why the £10 Christmas ‘benefits bonus’ has not increased for 52 years
The Christmas benefit payment bonus is being put under scrutiny.
Campaigners are calling for the government to boost the Christmas bonus paid to benefits recipients, which has not been raised since its inception 52 years ago.
The bonus, paid by the Department of Work and Pensions to people receiving certain benefits, is designed to help with extra costs around the festive period.
Recently, campaigners and individuals have called for the payment to be given a boost for the first time since it began, increasing the payment in line with inflation.
How much is the Christmas bonus?
The Christmas Bonus was first introduced by Edward Heath's Conservative government in 1972 to support benefit recipients at a time of high inflation.
The year before, inflation had hit 9.44%, a historically high rate at the time.
Any person in receipt of benefits would receive the £10, one-off, tax-free payment to help with costs over the festive period.
Now, 52 years later, people still receive the same amount they did when the payment was first introduced.
Had the Christmas bonus been increased in line with inflation, it would be worth nearly £130 today, according to Turn2us, while the Bank of England's inflation tool suggests it would be £115.08.
Who is eligible for the Christmas bonus?
The payment is made to anyone who receives one of 23 different types of benefits, including personal independence payments (PIP), disability living allowance (DLA), or those receiving a state pension.
Check out the full list of eligible benefits below, which does not include universal credit.
It is paid automatically into people's bank accounts in the first full week of December.
In recent years, there have also been signs that the government intends to phase out the payment.
The bonus hit the headlines in 2018 when benefits claimants were no longer entitled to the additional money when they were moved onto universal credit.
The DWP plans to have everyone receiving benefits not on universal credit migrated by the end of the 2024/25 tax year.
What are people saying about the Christmas bonus?
Recently, campaigners and individuals have called for the Christmas bonus not only to be kept but to be uprated in line with inflation to help those struggling amid the cost of living crisis.
Among those calling for change is Shona McMahon, who created an online petition in 2023 to call for the DWP to increase the payment.
McMahon, who receives employment and support allowance (ESA) and an adult disability benefit, said: "This isn’t asking for “just another handout”. This is for those of us that don’t have an option to earn anything extra.
"I implore you to sign and share this, if only because the government wouldn’t like their bonus to be stagnant for 51 years!"
She told the BBC: "The fact that it has been £10 for 51 years, since 1972, is pretty ridiculous, and it has not gone up.
"In 1972, you could buy a whole load of stuff. I think half a dozen eggs were about 22p then.
"On the petition, of the comments that are coming through, 'it is an insult' is the biggest one".
Last week, McMahon said she was "astonished at the renewed interest" in the campaign.
To date, the petition has accrued more than 21,000 signatures.
Anti-poverty charities Turn2Us and the Joseph Rowntree Foundation have also called for the payment to be increased.
What has the government said?
To date, no changes to the bonus have been announced by the government.
In a statement, the DWP said it wants to "fix the fundamentals of the social security system" so that "people don't rely on crisis support".
It also said it is introducing additional measures, like uprating benefits and introducing a fair repayment rate on universal credit deductions to help people out.
A DWP spokesperson said: “We’re protecting the most vulnerable by extending the Household Support Fund and Discretionary Housing Payments for 2025-26.
“That’s why this government is increasing the national living wage, uprating benefits and helping over one million households by introducing a fair repayment rate on universal credit deductions, while our child poverty task force develops an ambitious strategy to give all children the best start in life.”
