A long-running Christmas tradition is again putting cash into the hands of Dunedin Hospital patients

The annual Richmond Shilling is being handed out at the hospital today - a custom dating back to the 1880s.

While it once amounted to a single shilling, the gift is now 10-dollars for each patient.

The tradition was started by former Dunedin publican James Richmond, who set aside part of his estate to spread Christmas cheer.

His original idea was to give patients enough money for a glass of beer.