Local Housing Allowance exemption

Our daughter came back to live with us last September. She had been sectioned due to an acute psychotic illness and was in hospital in Oxford. We live in Cardiff. She was seen by the local mental health services for a few months but she stopped going and stopped taking her medication so she has been removed from their list. It took two years to get her PIP and she receives the standard rate of daily living component. The leader of the tribunal said that, as her mental health was much more severe, she could make a new claim. I didn't want her to be put through that stress again so she will be in receipt of this till early 2023.
She has undiagnosed OCD - a psychiatrist once mentioned that she had symptoms but she didn't get a diagnosis at that time because she refused to engage with mental health services. She has Asperger's and has had depression and severe anxiety for a long time.
Because she is finding it very difficult to live with us (we only have one toilet and she is very distressed at having to share it and indeed the entire bathroom with us) we want to find her a one-bedroom flat. Is she entitled to an exemption from the Local Housing Allowance restriction which would only give her £71 per week or would she have to be in receipt of the higher rate of the daily living component of PIP?

Hi Eleanor and my sympathy on your daughter's and you and your husband's situation. If and when you find out the answer to your question, please would you come back and post it on here?
I don't know what my sister's rent is but in inner London in a proper one bedroom housing association flat it can't be cheap. She was set up in it by the staff on leaving post-mental-health-inpatient supported housing. Our parents had got her sectioned and would not have her back, they're both dead now. She's diagnosed with OCD and hoarding, but I had a massive lightbulb moment recently after doing the AQ50 myself and accepting that I have Asperger's. I realised that my sister is on the spectrum and it is staring all the professionals dealing with her in the face but they have not realised any more than I did for years. But she had max DLA and has got max PIP indefinite, thank God, a while before turning pension age recently.
Would it be possible for you to be your daughter's appointee so that you could tackle a new claim? [after all a renewal is around the corner anyway], if you were, I think you can insulate her from the stress.
Also remember that for PIP, even if she does not have the diagnosis, if she has the effects and you diarise them, she could still be successful in a claim with your assistance. I did our daughter's last diary for CFS etc by attempting to phone and logging the response/lack of response, which worked very well as proof.
very best wishes,
Denby