Pensions: Money Box caller talks impact of age differences
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The £10 Christmas bonus is automatically given to those on certain benefits but anyone claiming disability or state pension could be eligible for an extra financial boost. The payment will be marked on their bank statements as ‘DWP XB’.
As Christmas falls on a Saturday this year, those expecting benefits payments and bonuses after the 25th will be receiving them on Friday December 24.
The DWP has announced that the Christmas payments will commence and those eligible for the automatic payment will be receiving a letter informing them of when their bonus should be paid.
This payment will not affect any other benefits one currently receives but eligibility depends on the type of benefits and pensions they claim.
To be eligible for the payment as a pensioner, they have to be present in, or a resident of the UK, Channel Islands, Isle of Man or Gibraltar.
Those living in the EU, EEA or Switzerland and claiming the state pension can check their eligibility for the bonus on the Gov.uk website.
Additionally, to receive the payment one has to be getting one of the qualifying benefits within the first full week of December, otherwise known as ‘qualifying week’.
These include Disability Living Allowance, Mobility Supplement, Pension Credit, PIP, State Pension and Severe Disablement Allowance.
Other pension types such as War Disablement Pension at State Pension age, War Widow’s Pension and Widow’s Pension also qualify.
Other benefits that are eligible for the bonus include: Armed Forces Independence Payment, Attendance Allowance, Carer’s Allowance, Child Disability Payment and Constant Attendance Allowance which are paid under the Industrial Injuries or War Pension schemes.
Incapacity Benefit, Industrial Death Benefit, Unemployability Supplement or Allowance, Widowed Mother’s Allowance and Widowed Parent’s Allowance are also eligible.
If one has not claimed their state pension and is not entitled to one of the other qualifying benefits they will not be entitled to the Christmas Bonus.
A comprehensive list of eligible benefits can be found on the Gov.uk website.
Those who believe they are eligible for the payment but do not receive it should contact the Jobcentre Plus office or Pension Service.
The tax-free boost can provide much needed relief for pensioners ahead of the April 2022 pension boost.
The state pension increase in April 2022 is aligned with the inflation aspect of the newly implemented double lock..
With the triple lock mechanism currently suspended, pensioners are losing out on a potential eight percent increase as wages fluctuate due to the abnormal economic situation.
Instead, those claiming state pension will see a 3.1 percent increase, losing another 0.9 percent off the estimated inflation rate of four percent which the Bank of England predicted earlier this year.
The full new state pension, currently around £179.60 per week, will rise by £5.57 to a new £185.17 per week.
This will result in pensioners receiving an extra £289.64 every year and see their income rise from £9,339.20 to £9,628.84 for the full 12 months.
The full basic state pension will see a weekly rise of £4.27, going from £137.60 to £141.87.
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