You'll probably be wasting your time if you seek to get any further money out of the council. The local authorities' sick pay scheme is one of the most generous in the UK, but it's not a bottomless pit. The council has complied with its duties in respect of sick pay. It would be acting illegally, by wasting public money, if it made someone redundant when their post still exists.
It might be worth checking on the rules relating to early retirement on the grounds of ill health. You might be able to find that information (or relevant contact details) from here:
http://www.lgps.org.u...page.do?pageId=100342
Otherwise you should be checking on the details of such benefits as ESA, Council Tax Benefit and Housing Benefit/LHA:
http://www.direct.gov...Support/esa/DG_171896
http://www.direct.gov...ow_income/DG_10018923
http://www.direct.gov...ow_income/DG_10018926
http://www.direct.gov...ow_income/DG_10018928
Those links could become particularly important as I would e