DWP payments could add up to £20,000 to your bank account before Christmas

There are six unexpected worth up to £20,000 that could add money to your bank account before Christmas.

For example, the extra money could be due to arrears owed to you, a Christmas bonus, or a correction of a historical underpayment error by the benefits office.

Before spending the money, it's important to confirm where it came from and why you received it, as you may not be entitled to keep it, reports .

If it turns out to be an accidental overpayment, even if caused by a DWP error, you'll likely need to repay the excess. It's better to clarify this upfront rather than face an unexpected bill later that could strain your finances.

On the other hand, if the payment is legitimate, you'll have extra funds to help with winter expenses or Christmas shopping. Knowing for sure means you can confidently use the money without concern.

It has been reported that you might get a back payment from the DWP if your benefits have been underpaid. In one case, around 70,000 people have been underpaid on their Employment and Support Allowance (ESA) after transitioning from older benefits such as Incapacity Benefit.

Around 20,000 of these individuals were eligible for an additional payment known as the 'severe disability premium,' but never received it. In some cases, the amounts owed could be as high as £20,000. The DWP is addressing past underpayments by issuing back payments to those affected. This means individuals who were previously underpaid could receive significant lump sums deposited directly into their bank accounts.

Additionally, people transitioning to Universal Credit may receive arrears payments for legacy benefits they were entitled to but didn't receive previously.

For both groups, there's good news: the DWP has implemented safeguards to ensure these payments don't negatively affect means-tested benefits like Universal Credit. Normally, savings above a certain threshold can reduce eligibility for these benefits, but:

For lump sums under £5,000, the payments won't be included in the calculation of savings for a period of 52 weeks. This allows recipients to access the overdue funds without worrying about an immediate impact on their benefit awards. This policy provides financial relief while ensuring individuals retain their full entitlement to ongoing support.

When your personal or financial circumstances change, it often affects the amount of benefits you receive. These adjustments ensure that your payments accurately reflect your current situation, which could result in either an increase or decrease in the amount of money you're entitled to.

For example, if you have another child, your Child Benefit payments will increase to account for the additional dependent. This is because the benefit is designed to support families based on the number of children they have.

If your regular payment day falls on a bank holiday, you'll usually receive your payment early. In most cases, the money will be deposited on the last working day before your scheduled payment date.

The next bank holiday in the UK is Christmas Day, so if your usual benefit payment day is a Wednesday, you may receive your payment earlier.

Similarly, the DWP's Christmas Bonus is a one-time, tax-free payment of £10 issued before December 25. It is available to individuals receiving certain benefits during the qualifying week, typically the first full week of December.

The payment will be deposited into your usual account and may appear on your statement as 'DWP XB.' However, the government has not yet confirmed the exact date when the money will be credited.

Another government error involves the calculation of Personal Independence Payments (PIP).

Since 28 November 2016, changes were introduced regarding how overwhelming psychological distress affects a person's ability to plan and follow a journey. However, this adjustment wasn't properly applied to many claims, prompting the DWP to review cases to determine if individuals are entitled to additional support.

The DWP is also reassessing all claims that were rejected since the rule change to identify cases where applicants should have received payments under the revised criteria.

If someone was underpaid or had their claim incorrectly denied, their payments will be backdated to either the date the rule change took effect or the date of their application-whichever is later.