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£10 christmas bonus for benefits claimants

Journalist: Emma Lunn, Freelance

ended 30. September 2025

I'm writing a feature for Saga (aimed at readers 50+) about the £10 DWP Christmas bonus for those claiming the state pension and various other benefits - although you can't get it if you just get Universal Credit.

The bonus was introduced in 1972 and has always been £10 - so worth a lot then, not much now.

I'm looking for money/poverty/benefits experts to comment on:

How much the christmas bonus would be now if it had risen in line with inflation?

Why it's unfair that people on UC don't get the bonus?

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Eamonn PrendergastVerified
Chartered Financial Adviser at Palantir Financial Planning Ltd
From a Week’s Shop to a Sandwich: The £10 Christmas Bonus Stuck in 1972. The £10 Christmas bonus was introduced in 1972 and has never increased, making it one of the longest frozen benefits in UK history. Had it risen with inflation, it would now be worth around £120, according to the Bank of England’s calculator. Instead, today it barely covers a coffee and a sandwich. What makes it even more unfair is that those on Universal Credit, often the people most in need are excluded entirely. Meanwhile, frozen tax thresholds quietly pull millions into higher tax bands, while the state pension at least benefits from the triple lock. The reality is stark: freeze anything long enough and its value withers. Worse still, the government likely spends more administering this token £10 than pensioners actually receive, making the payment feel more like a reminder of neglect than a Christmas boost.