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State pension: How to find out how much cash bonus you’re due before Christmas | Personal Finance | Finance

supports people once they have retired to cover the costs of their day-to-day lives. Now, the Department for Work and Pensions (DWP) have revealed that this year a one-off ‘Christmas Bonus’ will be awarded to those who receive this benefit, and this is how you can find out how much you’re entitled to.

Last month, the DWP announced that a bonus payment will be made to pensioners and other select groups who qualify for the benefit.

The sum has been labelled as a ‘Christmas Bonus’ and will be a one-off tax free payment.

Currently, the bonus is worth £10. Although it may look small, it could help to cover one cost for a pensioner this Christmas.

There is no need to apply for the money, and if eligible, you should receive it automatically.

READ MORE: DWP update as £800 payment available to Britons before Christmas

UK residents should know that the bonus does not affect any other benefits that they may receive or be entitled to.

The qualifying week for the bonus is normally the first full week of December.

To qualify you must be present or ‘ordinarily resident’ in the UK, Channel Islands, Isle of Man or Gibraltar during the qualifying week.

You must also get at least one of the following benefits in the qualifying week:

  • Armed Forces Independence Payment
  • Attendance Allowance
  • Carer’s Allowance
  • 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

The state pension is split into two separate tiers.

Firstly, you have the older scheme, which is known as the ‘basic state pension’, and the other scheme, which is referred to as the ‘new state pension’.

Men who were born before April 06 1951 and women born before April 06 1953 are eligible to apply for the basic state pension.

In comparison, the new state pension is available to men and women born either on or after the respective dates mentioned above. You must also have at least 10 years National Insurance Contributions.

For the 2022-23 tax year the state pension will be rising by 3.1 percent – which is the rate of inflation.

Consequently, the new state pension will rise from £179.60 to £185.15 – an increase of £5.55 per week.

Meanwhile, the basic state pension will go up from £137.60 to £141.85 – which will give an additional £4.25 each week.

When examined over the course of a year, pensioners receiving the full basic state pension will be given an extra £221 in 2022.

Those who are entitled to the full new state pension will take home an added £288.60.

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