DWP urged to boost ‘stagnant’ Christmas bonus for benefit claimants to over £100 this winter

The ‘bonus’ for benefit claimants has stayed the same for over 50 years

The DWP Christmas bonus should be boosted, a petiton says (Peter Byrne/PA) (PA Archive)

The government has been urged to boost its annual Christmas £10 bonus for benefit claimants, with thousands signing a petition to bring the payment in line with modern needs.

Usually paid in the first week of December, the bonus is a tax-free £10 payment to people claiming certain benefits. These include carer’s allowance, personal independence payment (PIP), and pension credit, but those claiming universal credit as a standalone benefit are not eligible.

An online petition to increase the payment has attracted more than 15,000 signatures. It urges the Department for Work and Pensions (DWP) to consider lifting the amount in line with inflation – pointing out that the £10 sum has remained unchanged since 1972.

If this one-off bonus were increased in line with inflation over those 52 years, the payment would be lifted to £114.75, according to Bank of England data. Increasing it by the latest inflation figures would take it to just £10.22.

DWP secretary Liz Kendall (Getty Images)

First launched last year, the petition has gained thousands of new signatories as pressures grow ahead of winter. It was started by user Shona McMahon, who argues that the payment should be increased in line with inflation every year after an initial uprating.

“This isn’t asking for ‘just another handout’,” she writes. “This is for those of us that don’t have an option to earn anything extra.”

The renewed interest in the drive comes as energy bills are set to increase this winter as Ofgem’s price cap rises. Combined with Labour’s controversial cut to the Winter Fuel Payment for pensioners, many experts are warning this will be a difficult winter for the country’s most vulnerable.

Martin Lewis has urged the government to “rethink” the move to means-test the cold weather benefit, as he warns that all pensioners are likely to struggle more this year.

With the withdrawal of the £300-per-household cost-of-living support and the changing eligibility of winter fuel payments, worth £200 – £300, some could be as much as £600 worse off than last winter, he said.

Benefits for all claimants will see an annual increase in April as they uprate in line with inflation. Last year, they increased by 6.7 per cent, bringing the standard monthly rate of Universal Credit for over-25s from £368.74 to £393.45.

The DWP has announced no changes to the Christmas bonus.