Christmas Bonus

Murphybear

I’ve just received my £10 Christmas Bonus paid to pensioners plus others on some benefits. 

It’s the 50th anniversary of this but it’s the same as it was 50 years ago.  Does anyone know why no government has seen fit to  increase it in all that time.  I’m not complaining, I would genuinely like to know.  

Murphybear

calcotti said:

It was, I think, introduced as temporary. Successive governments have not wished to attract the headlines of cancelling it but have allowed it to wither.

Thank you, that’s very helpful.  It actually makes sense 

HillStreetBlues

When first introduced it would have paid for 1Kwh of electric for about a month, (700 hours) now it pays for about a day!

Murphybear

Last year I bought some  Hotel Chocolat chocs with it in a sale.    This year I might put it into the electricity bill pot 

Robbie64

From when it was first paid (in 1972), had the £10 kept up with inflation, it would be worth about £110 today.

In a way it's the same as the additional 25p (!) that is paid with the old State Pension when someone turns 80. That too has never uprated since it was first introduced in 1971 (under the same legislation that saw the Christmas Bonus introduced). That would be worth £10 per week, had it done so.

The Government have abolished the 25p weekly additional payment for recipients of the new State Pension but millions either still receive it or will receive it under the old State Pension scheme.

Spoonie_Turtle

Robbie64 said:

In a way it's the same as the additional 25p (!) that is paid with the old State Pension when someone turns 80. That too has never uprated since it was first introduced in 1971

Don't think you can even buy a Freddo with that any more.

Murphybear

Robbie64 said:

From when it was first paid (in 1972), had the £10 kept up with inflation, it would be worth about £110 today.

In a way it's the same as the additional 25p (!) that is paid with the old State Pension when someone turns 80. That too has never uprated since it was first introduced in 1971 (under the same legislation that saw the Christmas Bonus introduced). That would be worth £10 per week, had it done so.

The Government have abolished the 25p weekly additional payment for recipients of the new State Pension but millions either still receive it or will receive it under the old State Pension scheme.

I can’t wait.  Only 10 years to go 

HillStreetBlues

Spoonie_Turtle said:

Don't think you can even buy a Freddo with that any more.

You could have bought 500 of them in 1973  with the Christmas bonus.

Silvertabby

Robbie64 said:

From when it was first paid (in 1972), had the £10 kept up with inflation, it would be worth about £110 today.

In a way it's the same as the additional 25p (!) that is paid with the old State Pension when someone turns 80. That too has never uprated since it was first introduced in 1971 (under the same legislation that saw the Christmas Bonus introduced). That would be worth £10 per week, had it done so.

The Government have abolished the 25p weekly additional payment for recipients of the new State Pension but millions either still receive it or will receive it under the old State Pension scheme.

Back in 1972, the average State pension was less than £10 per week, so if that had only increased by inflation it would be worth less than £100 today.  

It must cost more in admin costs to pay the Christmas bonus than it is actually worth, but I expect that all politicians - of any flavour - just wouldn't want to put up with the moaning if they scrapped it.

slowcars

If it had just kept up with inflation from 1972 the payment would have to be £155 today

Silvertabby

slowcars said:

If it had just kept up with inflation from 1972 the payment would have to be £155 today

It depends which figures you are using.

On the basis that the basic state pension in 1972 was £6.75 per week, and using the cost of living increase factor from the public sector PI tables (RPI to 2010 then CPI) I make that:

£6.75 X 13.8331 = £93.37