The problem with Discretionary Housing Payments is that they are just that - Discretionary!
The LA just needs to be fair. The DHP guidance given by the DWP states:
"You should be aware that although the legislation gives you a very broad discretion, decisions must be made in accordance with ordinary principles about good decision making, ie administrative law. In particular, LAs have a duty to act fairly, reasonably and consistently."
It's certainly worth asking for the DHP decision to be looked at again (although there's no official appeal rights as such), perhaps highlighting the increased costs faced by the family with two disabled daughters.
It may also be worth pointing out that as DLA is disregarded in the assessment of HB/CTB (and IS I think) it is reasonable to disregard it for DHP.
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