natural migration for ex-student with children

The LA are insisting that the end of a course of study / student income is a change of circs for which they can end an HB claim.  Student is a single parent (was also a carer but child’s DLA ended) so since the end of student income just gets CTCs and CB and is benefit capped due to affordable rent. No-one advised them to claim UC as a jobseeker at the time so she hasn’t and it would now be very financially difficult to do so until she has found work.

Guidance for HB DMs says natural migration occurs moving from employment to unemployment due to needing to claim JSA. Does this apply from student income to unemployment? If someone chooses not to claim as a jobseeker, especially as they would be no better off (due to benefit cap) and continue to receive tax credits, is the position the same. Are they treated as having made a claim as a jobseeker even if they haven’t?

many thanks

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