Deposit dispute

Tenancy Deposits

I am currently in dispute with our former tenants regarding the amount of deposit that should be returned to them. They made a claim to the DPS before moving out which I disputed and countered, but my counter offer was turned down by them.

My understanding from the DPS is that we have 2 options: to use the ADR process or go to court. It is clear from the wording of the email I received in response to my counter offer that the court option is the only one that my ex-tenants will agree to. My question is: how do I go about this? Is this something that a Small Claims Court will deal with?

If it is the Small Claims Court, I also need to go through the Small Claims Court to attempt to recover unpaid rent, which my ex-tenant originally said could partially come out of the deposit. Do I need to do 2 claims or can I deal with both cases in one?