There was a commissioner's decision recently (sorry, can't remember the number) which said that if the councils promised that they would pay the landlord but then paid the tenant they could not pay again. However, my recollection is that the council had not issued a decision to the effect that they would pay the landlord.
If a decision has been notified (i.e. giving the usual info, such as the right of appeal etc) and the council then do not pay, it might be possible to sue the council.
Failing this, the Ombudsman would certainly recommend compensation, as they have done in many similar cases.
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