UK households have an opportunity to claim up to £515 in extra cash ahead of Christmas through several simple schemes. Personal finance experts emphasize that many of these options are available even to people who are not on benefits, offering families a valuable financial boost during the festive season.
These payments come from a mix of official Department for Work and Pensions (DWP) benefit schemes and generous bank switching bonuses from major lenders. With households facing rising costs, taking advantage of these offers can help reduce holiday expenses significantly.
Banks like Santander and First Direct are leading the way with switching incentives. Santander rewards new customers switching to its Everyday Current Account with £200, while First Direct and Royal Bank of Scotland (RBS) both offer £175 for customers who complete a full account switch through the Current Account Switch Service (CASS).
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Martin Lewis’ Money Saving Expert team explains that these switch incentives are designed to attract customers from rival banks. The switch process includes transferring all payments, direct debits, and standing orders automatically, and also closing the old account, making it hassle-free.
The Department for Work and Pensions supports local councils in distributing additional funding for residents in need. For example, Islington Council in London is offering a £200 payment to those aged over 66 with low incomes. Applicants need to upload a bank statement showing their name and address. Payments are limited to one per household, and timely application is advised as funds are limited.
In addition to these payments, there are cashback opportunities for Christmas shoppers. Financial educator Charlotte Jessop points out that using cashback tools can save shoppers an average of 5%, equating to around £80 on the estimated £1,600 UK household Christmas spend this year.
Other DWP offerings include the Cold Weather Payment, which provides £25 for each seven-day period of freezing weather from November to March to eligible benefit claimants. Eligibility often involves receiving Universal Credit or Pension Credit and having certain vulnerabilities such as being disabled or caring for a child under five.
The DWP also issues an annual £10 Christmas Bonus automatically to qualifying claimants, giving a modest financial lift during the holiday period. These payments require no application, provided recipients meet the criteria set by the department.
By combining bank bonuses, council support, and government benefits, UK households can secure meaningful additional funds to ease the financial strain this Christmas.