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DWP says ‘no current plans’ to revise £10 annual Christmas Bonus which remains unchanged in 50 years
10.01.2023 - 13:19 / dailyrecord.co.uk
The Department for Work and Pensions (DWP) has said there are “currently no plans” to revise the arrangements surrounding the annual £10 Christmas Bonus which has been paid to millions of benefit claimants since it was launched by Ted Heath’s Conservative Government in 1972.
The Christmas Bonus is a tax-free, lump sum payment made to people of State Pension age and those in receipt of certain benefits. It has not been uprated or increased since it was introduced five decades ago and in today’s money, it would be worth around £168 - when calculated under the composite price index published by the UK Office for National Statistics (ONS).
A composite index is created by combining price data from several different published sources, both official and unofficial. The Consumer Price Index (CPI), normally used to calculate inflation, has only been tracked since 1988.
In a written question, Independent MP Jonathan Edwards asked the DWP what assessment it has made of the potential merits of “ensuring that the annual Christmas Bonus to recipients of benefits is increased in line with inflation?”
DWP Minister Laura Trott MP responded: “The Christmas Bonus is an annual, tax-free, lump sum payment to pensioners and to working age people who are in receipt of certain qualifying benefits during the relevant week which is usually the first full week in December.
“The bonus was initially introduced as a one-off payment of £10 in 1972 and has not been uprated or increased on a yearly basis.
“The Government remains committed to providing support to pensioners and others who receive the payments and has no current plans to revise the arrangements.”
To qualify for the Christmas Bonus in 2023 you must be living in the UK, Channel Islands, Isle
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