Your client has a choice in terms of ongoing income. As stated above, if he feels he isn't capable of work (or his mental health deteriorates) and his GP is willing to issue medical certficates, he can claim Income Support/Incapacity Benefit on sickness grounds. Alternately, he can claim Hardship Payments. Hardship Payments are paid at a reduced rate (usually 40% less than JSA, 20% if your client has a 'serious illness') and he'll need to continue to sign on as available for work, etc. He can carry on with the appeal whichever route he follows. If the appeal is successful he'll be refunded anything he has lost.
In relation to the appeal, he needs to show he had good cause for not applying for the job. From what you have said, it certainly sounds as though what he did (or didn't) do was perfectly reasonable, so his case looks strong. If it was me I'd write in support of his appeal, clarifying the main points of his argument (especially as it sounds as though he may not have been very clear in his appeal letter) and asking them to list me as his representative so that I'd recieve a copy of the appeal bundle when produced. It may be that the decision will be revised prior to appeal. It certainly seems harsh to impose a full 26 week sanction and if the worse comes to the worse and the appeal doesn't succeed completely, the sanction may well be significantly reduced.
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