J
Welcome to the forum.
In case you are not aware, your real name appears to be showing in the forum, if you want to change this then follow the instructions in the following FAQ
My full name is showing, how can I stop it?
I'm afraid you will need to request a new Mandatory Reconsideration and then go to appeal if they do not change this new Decision.
As to the DHP, you'll need to speak to your LA, calculations of your income can include any DLA/PIP payment but I believe that the recommendation is that they do not.
Gordon