In my view, there is no room for discretion in this case.
The LA is required to inform the RO of the relevant occupiers (which has been done). In turn, the RO is bound by the RO regulations in arriving at the determination that two brothers are deemed to be able to share a bedroom - even if they can't.
Somewhere on either this forum, or the HBinfo forum (can't recall offhand), someone posted a response by the Government on the issue of extra rooms.
The response was pretty robust in stating that the legislation was not intended to allow for extra rooms just for medical needs. Of note, that same response seemed (from memory) to suggest that extra rooms for rotating carers should also not be allowed.
DHP seems to be the only route available.
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