You stated her husband is in receipt of DLA so the financial requirement does not have to be met regardless of whether carers allowance has stopped.
The income support rate for a couple with 1 child is currently £181.75 per week 2015-2016 rates so that is what has to be shown after council tax and rent or mortgage has been deducted.
Yes it is the same when she applies for FLR but the above figures have to be met also I suggest your friend finds a job which can actually be shown through the books as to say ie: salary slips showing the amount received and paid into an account.
The word cash in hand sounds dubious at the least especially if this is not been declared.
I don't wish to alarm your friend but this is my personal opinion as other will most likely add too also through the proper declaration of monies received her husband could also meet the criteria for Working Tax Credits ect to make up any shortfall.
Please feel free to ask anything else if needed...
