In my experience, domicilliary hearings are very difficult to get, but ask anyway as you never know. However, in this case, a good written submission backed up with medical evidence might be enough - I would do this and attend the hearing in the absence of the appellant.
Is the daughter her appointee for benefit purposes, or does she have power of attorney? If not, the LA is wrong in their approach - they cannot impose any duty to initiate claims or report changes on anyone but the claimant or a person officially appointed to act on her behalf. CH/3817/2004 should help you with your submission.
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