MILLIONS of people on benefits will get an extra payment in the coming weeks.
People receiving certain benefits can get the Christmas bonus ahead of the festive season.
Millions of households will get the cash bonus directly into their bank accounts[/caption]
The free cash will be sent to households during the first full week of December.
This year, December 1 lands on a Monday so you should get the payment within the first seven days of the month.
The bonus is only £10 – but it’s still worth knowing about as it could cover a few items.
It was first introduced in 1972 and hasn’t risen in value since then.
If the payment had risen in line with inflation it would now be worth £118.69, which would help to cover a Christmas food shop.
Anyone who is eligible to claim the bonus does not need to apply and will be paid automatically.
If you are not sure if you have received the payment before, check on your bank statements for a code which says “DWP XB”.
To get the money you usually need to be claiming benefits before the first full week of December.
The full list of benefits which make you eligible for the bonus include:
- Adult Disability Payment
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Carer Support Payment
- Child Disability Payment
- Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
- Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
- Disability Living Allowance
- Incapacity Benefit at the long-term rate
- Industrial Death Benefit (for widows or widowers)
- Mobility Supplement
- Pension Age Disability Payment
- Pension Credit – the guarantee element
- Personal Independence Payment (PIP)
- Scottish Adult Disability Living Allowance (SADLA)
- Severe Disablement Allowance (transitionally protected)
- State Pension (including Graduated Retirement Benefit)
- Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
- War Disablement Pension at State Pension age
- War Widow’s Pension
- Widowed Mother’s Allowance
- Widowed Parent’s Allowance
- Widow’s Pension
If you think that you qualify but don’t receive the payment automatically you should contact your local Jobcentre Plus or Pension Centre.
How to save up for Christmas
Now we’re in September there’s just a few months left to save up for Christmas.
But it’s not too late to get your finances in order and there’s some tricks you can use to boost your savings.
For example, you could switch banks to take advantage of free cash-switching perks.
TSB currently offers £100 to new customers to switch plus £210 worth of extra cash and vouchers.
You could also boost your savings by putting them into a high interest rate account.
Use price comparison websites such as Compare the Market, Finder.com, Go.Compare and MoneySupermarket to look for the best rates available.
How you can find the best savings rates
If you are trying to find the best savings rate there are websites you can use that can show you the best rates available.
Doing some research on websites such as MoneyFacts and price comparison sites including Compare the Market and Go Compare will quickly show you what’s out there.
These websites let you tailor your searches to an account type that suits you.
There are three types of savings accounts fixed, easy access, and regular saver.
A fixed-rate savings account offers some of the highest interest rates but comes at the cost of being unable to withdraw your cash within the agreed term.
This means that your money is locked in, so even if interest rates increase you are unable to move your money and switch to a better account.
Some providers give the option to withdraw but it comes with a hefty fee.
An easy-access account does what it says on the tin and usually allow unlimited cash withdrawals.
These accounts do tend to come with lower returns but are a good option if you want the freedom to move your money without being charged a penalty fee.
Lastly is a regular saver account, these accounts generate decent returns but only on the basis that you pay a set amount in each month.
Plus, you could try budgeting apps to help you track your spending and save away money without you even realising.
Apps like Plum and Emma use open banking to automate your savings based on what you can afford every month.
You could also use spare change round-ups that round up each of your transactions to the nearest pound and save away the difference.
Support if you are struggling
If you are struggling there are more ways to get financial support.
For example, cash-strapped families can get access to money through the Household Support Fund (HSF).
The scheme has been extended multiple times with the latest round running between April 2025 and March 2026.
Each council in England has been allocated a share of the £742million fund and can distribute it to residents in need.
Eligibility criteria varies based on where you live but usually help is offered to those on benefits or a low income.