Every year, just before Christmas, the Department for Work and Pensions (DWP) provides a one-off £10 Christmas Bonus to eligible claimants. This payment was first introduced in 1972, with the intention of offering pensioners and people on certain benefits a little festive support.
At the time, £10 had meaningful value. It could cover food, utilities, or Christmas essentials. But more than 50 years later, that £10 has remained frozen in value, despite rising living costs. In 2025, critics argue that the amount is outdated and largely symbolic, sparking renewed calls to increase it.
Why Are Campaigners Calling for an Increase?
Campaigners, charities, and MPs say that the £10 payment no longer serves its purpose. With inflation, food prices, and energy bills continuing to climb, they argue that the bonus has become tokenistic rather than supportive.
Research shows that if the payment had been uprated with inflation since 1972, it would now be worth around £118. That figure is often quoted as the “fair” amount that pensioners and claimants should receive in 2025.
Who Currently Qualifies for the £10 Bonus?
The DWP pays the Christmas Bonus automatically to people receiving certain benefits in the qualifying week, usually the first full week of December. Eligible groups include:
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State Pension recipients
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Disability Living Allowance claimants
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Personal Independence Payment claimants
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Carer’s Allowance recipients
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Attendance Allowance claimants
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Employment and Support Allowance (income-based)
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War Pensioners and certain Armed Forces benefits
The bonus is tax-free, does not affect other benefits, and is paid into the same account as a person’s usual benefit or pension.
Why Has It Stayed at £10 for Over 50 Years?
The main reason is that successive governments have not committed to uprating the bonus. Unlike other benefits, which are often tied to inflation or earnings, the Christmas Bonus was set as a fixed payment in legislation.
Changing it would require parliamentary approval and additional Treasury spending. Politically, ministers have often argued that the payment is a “seasonal gesture” rather than a core benefit.
How Much Would It Cost to Raise the Bonus?
If the DWP increased the bonus from £10 to £118 for the estimated 15 million eligible people, it would cost the government over £1.7 billion.
Campaigners say this is affordable compared to other government spending and would directly benefit vulnerable groups. Critics, however, warn that such spending might be difficult in a tight fiscal climate, especially with ongoing debates about pensions, Universal Credit, and public services.
The Case for Modernisation
The argument for modernising the Christmas Bonus rests on three points:
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Fairness – The £10 figure no longer reflects today’s living standards.
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Impact – A higher bonus could help pensioners and low-income households manage Christmas costs.
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Trust – Updating the payment would demonstrate that the government is responsive to real financial pressures.
Voices from Pensioners and Claimants
Many pensioners describe the £10 payment as insulting, given how little it covers. A survey by Age UK found that over 70% of respondents wanted the payment increased, while nearly half said they didn’t even notice it arriving in their account.
For claimants struggling with the cost of living, an extra £118 could mean a week’s worth of food shopping, help with heating bills, or covering festive family expenses.
Political Pressure on the Government
In recent months, MPs from different parties have raised the issue in Parliament. Petitions have also gathered thousands of signatures, calling for an increase.
The Labour opposition has accused the government of “turning a blind eye” to pensioner poverty. Meanwhile, some Conservative MPs have privately admitted that leaving the bonus at £10 looks outdated and out of touch.
Could a Change Happen in 2025?
So far, the DWP has resisted calls for an increase. Official responses state that there are no current plans to raise the £10 bonus. However, with a General Election on the horizon, campaigners believe pressure could mount.
Some experts suggest a compromise – raising the bonus to £25 or £50 – rather than the full £118. This would modernise the payment without costing the Treasury billions.
The Broader Context of Pensioner Support
The Christmas Bonus debate comes at a time when pensioners are also seeing changes to other support:
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Triple Lock State Pension continues to rise, but future sustainability is questioned.
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Winter Fuel Payment has faced scrutiny, with calls for better targeting.
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Cost of Living Payments introduced in recent years show how urgent support can be delivered.
Against this backdrop, keeping the Christmas Bonus frozen at £10 seems increasingly out of step.
Public Opinion
Polling suggests strong public support for an increase. Many argue that pensioners, who have contributed through taxes all their lives, deserve better recognition. Younger claimants also see it as a fairness issue, noting that government budgets always seem to find room for other priorities.
What Happens Next?
Unless the government announces a change in the Autumn Statement or Budget, the 2025 Christmas Bonus will remain £10. However, campaigners have vowed to keep pressing, and the issue is likely to be revisited ahead of the next election.
Key Takeaways
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The £10 Christmas Bonus has been unchanged since 1972.
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Adjusted for inflation, it should now be £118.
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Millions of pensioners and claimants receive it automatically.
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Campaigners want it increased to reflect modern living costs.
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The government has so far refused to commit, citing expense.
Conclusion
The debate over the DWP Christmas Bonus is about more than just money. It symbolises how governments treat pensioners and low-income households. While £10 might once have made a difference, today it falls far short of meeting real needs.
Raising the bonus to £118 would provide meaningful support at Christmas, but whether the Treasury is willing to spend billions remains uncertain. For now, millions will once again receive the same £10 they’ve had for over five decades – a reminder of how slow welfare reform can be.