For ID they could show things like gas / electricity letters sent to their address, etc, in the normal way.
For up to date HO information about their status they have two options worth considering:
1. get a letter from their solicitor confirming the status as far as is known to date (this might eat into the time the solicitor has to run their immigration case for them, so if instead they have a recent letter anyway they may prefere to use that);
2. DWP contact the HO on their "special line". They might be more inclined to do this once it has been explained that this is not an ID issue but a status issue (perhaps they are confusing the two?).
Bit confused as to why they have an IS96 dated May 2003. Was this to replace an earlier IS96?
For what evidence DWP can ask for see CPAG handbook. Basically, it is probably legit for them to ask for an update about HO status. However, they also know how difficult it is to get information from the HO. It is better for all concerned if the DWP do it, and I see no reason why they would refuse, especially if client has shown willing and done what they can (see above).
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