Benefit claimants in the UK receive a Christmas bonus of £10 every December. Since 1972, it’s been a goodwill gesture from the government. But with every passing year, when inflation and living standards are growing, many have been debating whether this payment that has stood for decades can really serve the purpose anymore.
A stagnant payment
The £10 Christmas bonus has remained the same for over half a century. Ted Heath’s Conservative government provides a one-off, tax-free payment to recipients of a specific number of benefits, including PIP and carer’s allowance, in addition to the state pension. However, the soaring cost of living has prompted calls for an increase in this bonus.
The current financial strain
As energy bills rise and hundreds of thousands of pensioners lose the £300 Winter Fuel Payment, the UK is bracing for a brutal winter. In reality, the need for greater support has never been greater. The move follows the government’s cut in winter fuel payments and the removal of the £300-per-household cost-of-living support, which means some people could be as much as £600 worse off than last winter.
Martin Lewis, the well-known money-saving expert, has called on the government to reconsider means-testing the Winter Fuel Payment, saying many pensioners will struggle more this year. With energy prices rising and support falling, there are growing calls for the Christmas bonus to rise in line with inflation.
The Petition for Change
An online petition calling for an increase in the Christmas bonus has received an avalanche of support. Started by Shona McMahon in 2023, to date it has garnered more than 15,000 signatures. According to Mrs. McMahon, the £10 bonus is now “practically worthless” and should increase in line with inflation. If the payment had increased in line with inflation over the last 52 years, it would currently stand at around £114.75.
McMahon notes how Christmas is one of the most money-consuming times of year. This small increase may make all the difference for those barely making this month’s wages. “This isn’t asking for ‘just another handout,'” she says. “This is for those of us without extra income.”
Labour’s Stand
The present Labour government has not yet met the demands in this petition. Liz Kendall, the Works and Pensions Secretary, has instead concentrated her efforts on encouraging people to go back to work rather than sit at home on state benefits. On her part, the Business Secretary Jonathan Reynolds played down the effect this cut in winter fuel payment might have because the state pension is higher this year and energy bills are lower than last year.
The way forward
With winter approaching and the financial squeeze beginning to tighten upon the population, the battle cry for a better Christmas bonus grows loud. Indeed, many would insist that the £10 payment, which has remained at that level since its inception, no longer meets today’s claimants’ needs. Money’s value, diminished further by inflation, makes readdressing the bonus’s worth nothing less than reasonable, indeed necessary.
In any case, the growing number of signatories to this petition underscores the widespread conviction that we need to raise this bonus. The future will determine whether the government takes action, but the urgency and clarity of the need are evident.
We hope that the government will take up the growing voices calling for a more meaningful Christmas bonus as Christmas approaches. After all, in these challenging times, everything is worth it.
