
The Spectator
The absurdity of the £10 Christmas bonus for pensioners
In the time honoured tradition of underwhelming Christmas gifts, surely none is quite so derisory as the government’s Christmas bonus for pension...
In the time honoured tradition of underwhelming Christmas gifts, surely none is quite so derisory as the government’s Christmas bonus for pensioners. Many recipients may not even notice it. A £10 payment by the Department for Work and Pensions, this tax-free bauble is sent to every state pensioner in the first week of December, plus those on carer’s allowance or pension credit. There is no fanfare from ministers, no letter from the DWP, it just quietly appears in the bank accounts of around 18 million people each and every year.
Nothing sums up the craven way our politicians deal with pensioners quite like the Christmas bonus First conceived by Ted Heath’s government in 1972, it was originally greater than the state pension itself, and was designed to cover the cost of a family’s Christmas dinner. However, since 1977, its value has remained unchanged at £10 – meaning the only Christmas dinner it’ll buy you these days is an M&S roast turkey ready meal for one. Indeed, given the average Christmas dinner is now estimated to cost about £32, you’d be better off using the DWP’s extra tenner to bribe the local carollers to leave you alone.
It isn’t the only absurdity in our £146 billion state pension system. Pensioners also get an extra 25p a week when they turn 80, which equates to around £14 a year. The winter fuel payment has remained capped at £300 since its introduction in 2003. The argument for leaving these anachronisms alone seems largely to be political convenience. Given the backlash to Labour’s attempts to restrict winter fuel payments, one can appreciate any government’s reluctance to be accused of stealing Christmas from the elderly by removing their festive allowance, however paltry.
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