Question: I work for the council. I have to give out lots of presents at Christmas time. Can I use interest money for that.
Answer: The first question is why did you take the interest money. Try to avoid it as much as you can. Giving interest and taking interest are both equal in sin.
Money acquired from interest cannot be used for charity, nor can it be used where a person can gain something, so if you were to give some gifts, you would receive some too. Therefore, you will have benefitted from that interest money. So, you should not use it for giving presents. Give it to a destitute person like a beggar, or homeless person, or where there is drought or famine, without the intention of gaining reward from Allah.
Since you work for the council, you must have a good salary. Use that for the presents.