Universal loan, PIP and annuity recipients in line with the December bonus

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Anyone who receives Universal Credit, PIP, or state pension benefits will receive a bonus before Christmas this year, the government has announced.

That means a little more money for anyone who is retired, receiving disability payments, looking for work, or earning a low wage.

The Christmas Bonus is a one-time tax-free payment made before Christmas to those who receive certain benefits and payments in the qualifying week, The Express reported.

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There are less than 100 days until Christmas, which can be more expensive for many people.

While the payment is only worth £ 10, it can be welcome during the Christmas season.

All benefits, pensions and allowances are usually transferred to a freely selectable account, for example a bank account, a building society account and a credit union account.

The Department of Labor and Pensions (DWP) has clarified the matter, saying that one should look for a key token on a bank statement. The bonus should appear as ‘DWP XB’.

However, in order to receive the Christmas bonus, a person must meet eligibility requirements. Fortunately, this isn’t too strict, which means a lot of people can benefit from it.

Individuals must be present or habitually resident in the UK, Channel Islands, Isle of Man or Gibraltar during that qualification week that year.

The qualification week is particularly important for the Christmas bonus, as this ensures eligibility. The DWP has confirmed that this is the first full week of December.

Unfortunately, this means that expats living abroad may not benefit in this way. Individuals living in a country in the European Economic Area (EEA) or Switzerland are encouraged to contact the government on this matter.

Universal Credit, State Pension, and PIP are a number of payments that can benefit from the Christmas bonus, but there are various other benefits and payments that are also eligible.

These include:

  • Care allowance
  • Dependency
  • Disabled Life Support
  • Annuity loan – the element of guarantee
  • War widow’s pension
  • Widow’s pension

However, the DWP has issued another warning to people who believe they may be eligible for a Christmas bonus.

The website states: “If you have not drawn your statutory pension and are not entitled to any of the other qualifying benefits, you will not receive a Christmas bonus.”

Fortunately, individuals do not need to take any action to receive or claim the Christmas bonus. People should get this type of payment automatically.

Anyone who thinks they have a Christmas bonus but is not getting a Christmas bonus is asked to contact the Jobcenter Plus office, which is responsible for the payment, or, alternatively, the pension service.

Anyone who lives in a married couple, in a registered civil partnership or at the same time together and both receives one of the creditable benefits, each receives their own Christmas bonus.

People whose life partner or life partner does not receive any of the creditable benefits can, under certain circumstances, still receive the Christmas bonus.

This is the case when both of the following conditions are true:

  • Both persons have passed the statutory retirement age at the end of the eligible week
  • The domestic partner or domestic partner was “ordinarily resident” or present in the United Kingdom, the Channel Islands, the Isle of Man, Gibraltar, the EEA or Switzerland during the qualifying week

and either:

  • The person is entitled to an increase in an eligible benefit for their life partner or life partner
  • The only Eligible Benefit a person receives is the Pension Credit

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