I reread the thread, and wonder whether a "cut to the chase" kind of letter would sort the CTB issue out. You mention your appeal letter included detail regarding the nature of their relationship (ie only three years, she has no rights to his house etc) but I think perhaps this misleads the LA into considering cohab issues.
The issue for CTB only,(re it would be different if he was claiming HB) is liability. (See pg 781 of CPAG - Couples living apart) However, as she is non-resident and not the owner of the property she can have no liability. I can't see how they are caught by this rule.
I suggest a short letter highlighting the key issue; he is a single claimant as they are separated permanently, with no intention for her to return home. Therefore he is assessed on his own resources and your mum's financial situation is irrelevant. The LA insistance on treating them as a couple only makes sense if they are temporarily separated - however this is permanent.
Get on to the LA appeals rep and ask for this to be looked at urgently.
(Emma - you may want to wait a few days to see if any Slytherins take delight in pointing out my errors)
(I have nephews who are HP fans, I'm not a sad adult, I read grown up books, honest!)
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