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Backdating request refused
I think its right that the reg 26 determination has been made by the decision on the first AP and therefore a fresh determination on that issue can’t be made after that decision.
However this overlooks the fact that a decision can be changed after it is made - i.e. by revision. Your client’s request for backdating ought to have been treated as a request for mandatory reconsideration of the decision on the first AP subject to the usual time limits.
Worth noting that there is no obligation under the regs for the claimant to ask for backdating. A reg 26 determination must be made in every case.
On the substance, what you are saying sounds reasonable enough.
You could perhaps try and appeal on the basis that the letter you have is, in effect, an MR. It might be simpler just to file an MR on that notice.