I am sorry that your daughters DLA has been declined.
It is no longer DLA but is called a Personal Independance Payment.
PIP is meant to describe the help and support she needs in everyday life
It has two components a care component and a mobility component. I applied and got PIP in April this year not as a result of Diabetes but on the grounds of severe mental illness.
The appeal process is laid out quite clearly. Firstly I suggest that you contact a welfare rights worker at your local council offices. They helped me fill in and send off the forms. They would also be more than willing to help in your appeal process. If I remember correctly you first ask for a reconsideration of your claim and if this is overturned then you have the right to appeal to a tribunal. The whole PIP process is a minefield, and the welfare rights workers are on to at least their 28th 285 page manual on filling in PIP forms. The PIP are looking for certain words and phrases in the application and this is where the welfare rights are of great help. I got mine on first application but only with the help of the welfare rights.
Another good source of information if from the "Benefits and Work Campaign Group".
Google this and it will take you to their website
www.benefitsandwork.co.uk
They offer leaflets and information with both application and appeals. On every application you must provide evidence on your daughters condition from every doctor and specialist that she sees. My psychiatrist had to send them a twenty eight page report, backing my claim along with my oncologist and urologist also including my G.P
I hope that this will be of a little help
I also hope that you can get the PIP that your daughter deserves
Regards
Mart