Hi - the problem here is that whilst the mother is getting CB for the female client, the female client cannot get IS, as you know. So you are right that the mother would have to stop her claims, although you can in fact argue that the young person's claim for IS takes precedence over her mother's CB claim for her (this would take time!). However, Tony is right in that generally speaking in situations like this, they get slightly more money if the grandparent claims. I'd want to sit down and double check first, though.
I don't see why they cannot continue as they are (with grandparent claiming) and the young dad claim JSA, getting the single person rate only (because his partner is not, whilst CB is in payment for her, a person who would get IS if she were to claim it).
The alternative would be for the mother to stop all claims for the female client, or for the female client to make a 'competing' IS claim which I think should be preferred, but as I say this does warrant a better off calc and also some thinking about the family set up (does the mother get benefits for any other dependants? How will it affect her income - would it be risky for the young people if the mother was not happy with the change etc etc).
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