German national receiving German JSA but refused HB / CTB in UK ...

Well hello once again and after looking in the Benefits for migrants handbook I find myself well and truly stumped again !?
Here goes ...

I have a cl who came to UK with his wife and child from Germany 01/12/11 and he receives German JSA of £1.444.88 pm.
he, wife and child are German nationals and he began to sign on at local JCP 05/12/11.
He last worked in Germany 09/11 and his wife 01/10.
He has a brother in UK who is of Sri-Lankan origin but who will soon become a British citizen and they are employed.
He has claimed HB / CTB but this has been refused because LA are stating cl. is not self sufficient or in receipt of a qualifying benefit.
He has not claimed CB / CTC.

MY understanding is :
He can claim CB / CTC in the initial first three months right of residence but if he has not got an extenede right of residence after the three months these benefits will cease.

My feeling is :
Cl must be able to claim HB / CTB because he is receipt of German JSA and he has been actively seeking work in UK and signing on at JCP, but i just cannot find this info. at all.

Cl. would have to satisfy the Habitual Residence Test.

Once more, any thoughts on these issues are most welcome !

Thank you and have a very good weekend all ...

Just one off the cuff thought.  If his German JSA is dependant upon him living in Germany, there may be an issue of where his normal home is - irrespective of any PFA hoops.

Thank you for your replies, most helpful, but am i correct re : CB / CTC, he can claim these immediately and backdate to 05/12/11 ?

Thanks once more ..