You could try and make the above argument, but if I was the LA I'd be countering with something like this:
1) a week is not an unreasonable period in which to act on a change in circs and, therefore, the delay does not constitute an official error (at least 3 CDs would support this argument).
2) although it is the same LA, the relevant departments / sections are not connected in such a way as to make it an official error (probably importing some of the principles in Hinchy & the DWP).
However, a couple of things caught my eye about your post. In particular, your post indicates there was dual liability.
If so, when did the clmt actually move into the "new" property? If at the beginning of the tenancy, could the dual liability have reasonably been avoided? If not, then HB is payable on 2-homes <HBR 7(6)(d)>.
Regards
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