DWP has ‘Christmas war chest’ of 12 payments worth £7,000 for people

The maximum payout could reach an eye-watering £7,205.DWP has ‘Christmas war chest’ of 12 payments worth £7,000 for people

The Department for Work and Pensions has a so-called hidden ‘Christmas war chest’ of payments which could add £7k to your bank The maximum payout could reach an eye-watering £7,205.

An average UK family is expected to spend anywhere from £719 to over £1,600 on Christmas, according to reports from late 2024 and early 2025. The wide range reflects different sources using varying calculations for gifts, food, and other expenses.

Research from Finder (Nov 2024) indicates the average person in the UK planned to spend £596 on gifts in 2024. VoucherCodes (Nov 2024) reported the average spend per child was £119.45.

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A Kantar report (Dec 2024) indicated the cost of an average Christmas dinner for four people was £32.57, a 6.5% increase on the previous year.

Other estimates suggest preparing a traditional dinner for 8 to 10 people at home could cost between £150 and £200, including turkey, sides, desserts, and drinks.

So the following schemes and payments are bound to help out:

Free childcare – up to £1,768 a month

Parents on Universal Credit who are working can get up to 85 percent of their childcare costs covered and it’s worth as much as £1,031.88 per month for one child or £1,768.94 for two or more children.

The scheme pays in arrears, so you must pay your childcare costs upfront and then report them to be reimbursed.

Energy Bill Grants – up to £1,700

Suppliers including British Gas, EDF, Scottish Power and Utility Warehouse run hardship funds that clear energy debt.

The British Gas Energy Trust is even open to non-customers but you’ll need to be in debt of between £50 and £1,700 to apply.

Funeral Expenses Payment – up to £1,000

This is not well known but Universal Credit claimants can get help with funeral costs of up to £1,000 for funeral costs.

The £1,000 figure refers to the maximum amount that can be claimed for “other” expenses, which typically include the funeral director’s fees, a coffin, or flowers.

On top of the £1,000, the payment can also help cover certain “essential” costs, including cremation or burial fees, doctors’ fees, and travel to arrange or attend the funeral.

Discretionary Housing Payment – Average £518

Councils can top up your Housing Benefit or Universal Credit housing element with a Discretionary Housing Payment (DHP) if you’re struggling with your rent.

To apply you’ll need to be on Housing Benefit or eligible for the housing element of Universal Credit and you could get £518.

Household Support Fund – up to £500

It will depend where you live but local councils have a Household Support Fund where they can either help their residents by dishing out cash payments or supermarket vouchers.

You’ll probably need to show that you are on a low-income with children, a pensioner or disabled.

Sure Start Maternity Grant – £500

First-time parents (or those having twins or more when they already have children) can claim this £500 grant. It doesn’t need to be repaid and won’t affect your other benefits.

The Sure Start Maternity Grant is a one-off, tax-free payment of £500 to help low-income families with the costs of a new baby. It is available in England, Wales, and Northern Ireland.

To qualify, you must receive one of the following benefits and meet specific criteria related to having children:

Universal CreditIncome SupportIncome-based Jobseeker’s AllowanceIncome-related Employment and Support AllowancePension CreditChild Tax CreditWorking Tax Credit (with a disability or severe disability element)School Uniform Grants – up to £200

Uniform costs can spiral, but some councils provide £25 to £200 per child to help with the cost. Just two councils in England (Brent and Norfolk) offer the full £200, but support is more generous in Scotland, Wales, and Northern Ireland.

There is no automatic, nationwide school uniform grant in England. Any support is at the discretion of individual local councils.

Bank Switching Bonuses – £175

First Direct is offering a £175 incentive to switch your current account, along with a £250 interest-free overdraft and access to a 7% Regular Saver account. The offer does not require you to be on benefits and the cash incentive will not affect any benefits you receive.

Warm Home Discount – £150

Households on qualifying benefits automatically receive a £150 discount on their winter electricity bill . Payments are applied directly to your energy account from October onwards.

In England and Wales, most eligible households on qualifying benefits will automatically receive a £150 discount on their winter electricity bill, credited to their account between October and March

Flexible Support Fund – around £150

The Flexible Support Fund (FSF) is a discretionary fund managed by the Department for Work and Pensions (DWP) through local Jobcentre Plus offices. It is designed to help those on qualifying benefits with the costs of finding and starting work. A Jobcentre Plus adviser decides if you can get the fund, and it does not need to be paid back.

The specific amount awarded depends on your individual needs and circumstances, so there is no fixed maximum. However, in some cases, such as for training costs, there may be a cap of around £150. The £150 figure may also be associated with other support funds, such as the Household Support Fund.

Healthy Start Vouchers

The Healthy Start scheme is a UK government initiative that provides low-income families with a prepaid card to buy healthy food and milk. It also provides access to free Healthy Start vitamins

You may be eligible if you are at least 10 weeks pregnant or have a child under 4 years old, and your family receives certain benefits..

DWP Christmas Bonus – £10

The annual Christmas Bonus from the Department for Work and Pensions (DWP) is a one-off, tax-free payment for people receiving certain benefits. For 2024, the amount is £10.

To qualify, you must be in the UK, Channel Islands, Isle of Man, or Gibraltar during the first full week of December and receive at least one of several specific benefits. You can find a comprehensive list of these qualifying benefits, which include various disability, pension, and carer-related payments, in the referenced web documents. Note that receiving only Universal Credit does not make you eligible.