Procedural definitions
The language of redundancy, savings and Universal Credit
The DWP, HMRC and Citizens Advice all use words that sound interchangeable but mean specific, technical things. Getting the wrong definition in your head is one of the most common reasons people miss money they're entitled to — or trigger an overpayment. Each entry below explains what the term means, why it matters, and what people often confuse it with.
Assessment period
The one-month window Universal Credit uses to measure your income, savings and circumstances before paying you.
Tariff income
An assumed monthly income Universal Credit adds for every £250 of savings you hold between £6,000 and £16,000.
Capital
Money and assets Universal Credit counts towards the £6,000 and £16,000 thresholds — savings, ISAs, Premium Bonds, second properties.
Deprivation of capital
Where DWP decides you deliberately reduced your savings to qualify for benefits and treats the money as still yours.
PILON (Pay In Lieu of Notice)
A payment your employer makes instead of you working your notice period — taxed as normal pay.
Run-on
A two-week continuation of legacy benefits (Housing Benefit, JSA, ESA, Income Support) after you first claim Universal Credit.
Work allowance
The amount you can earn each month before Universal Credit starts being reduced — but only if you have children or limited capability for work.
Joint claim
A single Universal Credit claim made together by a couple who live in the same household.
Housing element
The part of Universal Credit that helps with rent — replacing Housing Benefit for most working-age renters.
Limited capability for work (LCW / LCWRA)
A DWP assessment outcome meaning your health limits your ability to work — unlocking extra UC and reduced work-search requirements.
Built for procedural clarity
Every definition is cross-linked into the guides and tools where it matters in practice — so you can move from a word you didn't recognise to a complete picture of how it affects your situation.