DWP five-letter code to look out for that means you're getting 'bonus' payment

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The Department for Work and Pensions (DWP) is set to hand out a bonus payment this year. Its Christmas Bonus is a one-off payment, which is tax-free and paid to people on certain benefits.

It is usually paid ahead of Christmas to people receiving benefits in the qualifying week - which is normally the first full week of December. The DWP payment is automatic so you do not need to claim to get it.

The bonus does not affect any other benefit that you claim. If you receive the cash, it will usually appear on your bank account under a certain five-letter code.

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Gov.uk reads: "All benefits, pensions and allowances are normally paid into an account, such as your bank account. It may show up as ' DWP XB' on your bank statement."

To get the bonus, you have to be a resident of the UK, Channel Islands, Isle of Man or Gibraltar during the qualifying week. You also have to get at least one of a number of qualifying benefits:

  • 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 Credit - the guarantee element

  • Personal Independence Payment (PIP)

  • State Pension (including Graduated Retirement Benefit)

  • Severe Disablement Allowance (transitionally protected)

  • 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

You will not receive the £10 Christmas Bonus if you have not claimed your State Pension and are not entitled to one of the other qualifying benefits. If you think you are eligible for the bonus but do not receive it by January 1, 2025, you should contact the Jobcentre Plus office that deals with your payments or the Pension Service.