The fee waiver application is treated the same way as in-time application for further leave for the purpose of s3C of the Immigration Act 1971: the existing leave is extended on the same terms until the Home Office decides whether or not to waive the fees. There is then a further period of ten days in which to apply for leave (with or without a fee depending on the waiver decision) and if the application for leave is submitted within those ten days the original leave is extended further pending a decision on the substantive leave application.
In this case, the application for the fee waiver was received while the original leave was still current (just), so that leave is now extended at least until the Home Office decides whether to waive the fee, and then for a further ten days after that, and then again if the leave application is submitted during the ten days.