Interesting situation. I fully understand why the clmt has done what s/he has.
I don’t think there is much you can do – s/he has after all made an “honest” statement. HOWEVER, paradoxically, in the event of any subsequent overpayment, s/he has probably seriously weakened his own position by actually drawing attention to the issue at the outset (won’t matter anyway if there is no official error).
Personally, I’d process the claim, but send a covering letter with the normal notifications drawing attention to the claimant’s duties / responsibilities AND, further, pointing out that the clmt should check the notifs and if s/he doesn’t understand them, s/he should contact the Council. Draw particular attention to items of income and capital.
There are enough Commissioners decisions, where notifications have been at issue, to suggest that clmts will rarely be able to get away with a passive “I didn’t understand it” / “I couldn’t be bothered to read it”.
Regards