DHPs can be awarded indefinitely (subject to the qualifying conditions being satisfied & yearly "pool" limit). However, the "D" part of DHP means LAs don't have to pay anything at all.
But, given that it was the LA who (apparently) caused the problem in the first instance, I think you have a stronger argument than most applications for DHP. If the LA refuse further payments, ask them to explain why - the LA may well drop themselves in it by saying something along the lines of "...it's policy...". Such an explanation, or similar, would leave the LA open to JR on the grounds of fettering discretion.
Taking a slightly different tack; are there not grounds for making a claim for compensation? The LA appear to be suggesting they didn't do all they could in the first instance. Also, howabout trying to get the LA to rehouse the family - are they under any sort of duty in your clent's case?
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