I've never had a case like this turned down either.
Presumably your Decision Maker is getting hung up on the exclusion from IS for full-time students under 19 unless they are 'severely mentally or physically disabled and their disability means that they would be unlikely to find work within a year if they were to leave school now and sign on for work'.
If your client gets IB then she must satisfy the Personal Capabilities Assessment, which in turn must surely mean that she is unlikely to find work. She goes to a special school which must mean that she has a statement of educational needs which, again, is an indicator of the unlikelihood of her finding work. Presumably she also gets DLA.
I haven't come across a definitive definition of 'severely disabled' (please try not to use the word handicapped, people find it offensive), and I'm not convinced that one exists. I think that you will have to rely on the argument that the Secretary of State considers your client to be incapable of work for the purposes of receiving IB, and therefore must take that incapability into account when considering her IS claim.
I'd be very interested in hearing the outcome. I hope other DMs don't start getting their knickers in a twist over this issue!
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