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Query on behalf of a friend - change of HA rules suggesting she downsize!

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A friend has 2 daughters, aged 13 and 5. She qualified for HA property about 3 years ago, having gone through the emergency B&B type housing due to a relationship breakdown and losing her home. At that time, she applied for a 2 bed property, but the regs then stated due to the difference in ages of her girls, they could not share a room, so 2 bed was not an option, and she had to wait for a 3 bed to become available. Now she is settled, kids in new schools, she has found a new job and everything looking rosy for their future ... until this week!

She has received notification that from next April housing criteria has changed, and as her children are same sex, she now has to either downsize to a 2 bed (girls can share), or they will increase her rent by £48/month. However, when her eldest reaches age of 16 if she is still living at home, they will no longer be able to share, so if she downsizes now, she can then re-apply for a 3 bed property. WT?????

Has she got any avenue to fight this? She will struggle to afford the increased rent, and is feeling her world has been turned upside down and she is going to have to uproot and move again!

Thanks in advance for any advice.

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