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Additional £60 Christmas Bonus confirmed

  • Published: Tuesday, 16 December 2008

Following the coldest start to winter in 30 years, the government today formally ordered a special one-off payment of £60 to 15 million vulnerable people to help them through the winter and ease worries they have with their bills.

As announced by the Chancellor in the Pre-Budget Report, the additional tax-free payment will be paid automatically to customers who qualify for the £10 Christmas Bonus.

This year's Christmas Bonus will be paid in two instalments - recipients will get £10 in December as in previous years, with the additional £60 to be paid between January and March in the new year.

The majority of State Pension customers should receive the £60 payment in January 2009 in addition to their pension. The remaining three million customers will get their £60 in February or March 2009.

Cold Weather Payments

The Department for Work and Pensions also revealed that the recent cold snap has triggered around 500,000 Cold Weather Payments already this year, worth over £12 million.

Cold Weather Payments have been increased from £8.50 to £25 per week for winter 2008/09. They are paid out when the average temperature where the recipient lives is recorded as, or forecast to be, zero degrees Celsius or below, over seven consecutive days during the period from 1 November to 31 March.

Pensions Minister Rosie Winterton said:

"I hope this cash means that no one hesitates to turn up their heating this winter"

"We know that older people are facing tough times and that's why we are acting now to make this real help available.

"I am pleased to confirm that this year we will spend approximately £900 million on the additional Christmas Bonus payments, putting an extra £60 in every pensioner's pocket. They will also get bigger Winter Fuel Payments.

"We've seen the coldest start to winter for 30 years. I hope that this cash, alongside increased Winter Fuel and Cold Weather Payments, means that no one hesitates to turn up their heating this winter."

This support is in addition to the extra £4 billion that will be spent on pensioners next year, announced by the Chancellor in the Pre-Budget Report. This means the biggest increase in the State Pension since 2001, bringing it from £90 to £95 a week, and the biggest increase in Pension Credit since it was introduced, so that no pensioner need live on less than £130 a week from April 2009.

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