@jakfzs77-For the amount you have given, I think it is for a single, therefore they have not taken you into consideration, so there is no need to worry.

It should never affect your claim. She has the right to apply as your children are British. I am in the same case as husband of a British citizen and she claims everything she has to without affecting my stay status.

In your case you could have access to housing benefit. They would consider the welfare of your child and because of your child citizenship, you would be granted a stay in the country. Do not let fear get to you. You have the right to. As I supposed if his or her father is British, you should be ...

I was in the same case as you. I have a British wife and kids. I applied a year ago for housing benefit and Employment and support allowance. I was awarded those benefits for about 6 months after which time they stopped everything because I was not allowed to claim public funds. Like you said ...