I am in the same situation.
The wife (PBS Dependent) has "No Recourse to Public Funds" (NRPF) on her visa.
At the time our first child was born I was on ILR (so our child was a British citizen from birth), and I was granted British Citizenship myself within 2 months of the birth.
However, as my wife was the principal carer, when we filled in the form we put in both our details & respective immigration status and the CHB was being paid to an account in her name only.
Given the grey area on this topic, I recently changed the claimant to myself and the funds go to a Joint Account - just to prevent any potential issues at the time of her visa renewal / ILR.
I recently came across guidance from the Home Office published April 2016 which seems to indicate that while it is generally true that a person with NRPF tagged to their visa is NOT allowed Public funds, there are exceptions.
Specifically related to "
Child Benefit", the list of exceptions is as below:
The general rule is that no person subject to immigration control is entitled to child benefit
(Section 115 of the Immigration and Asylum Act 1999, sub-sections (1) and (3)). However, a
person falling under one of the following exceptions cannot be denied child benefit on the
ground they are subject to immigration control.
Exception 1
A person who has been given leave to enter, or remain in, the United Kingdom by a
maintenance undertaking by another person or persons (pursuant to the immigration rules
within the meaning of the Immigration Act 1971).
Exception 2
Nationals of a state with which the European Community has concluded an agreement for
equal treatment for workers in the field of social security who are lawfully working in the UK.
Note: countries which are covered by such agreements are Algeria, Morocco, San Marino,
Tunisia, and Turkey
Exception 3
Persons who are the family member of a person who is a UK, EEA, or Swiss national. The
parent of a British child will not be excluded from entitlement to child benefit on the ground
that they are subject to immigration control. However, if a child benefit claimant has a right to reside in the UK as a Zambrano-type carer they are excluded from entitlement to child
benefit by virtue of the Child Benefit (General) Regulations 2003.
Exception 4
A national of, or a person who has come to live in the UK from, a country that has a reciprocal social security agreement with the UK which covers child benefit. Countries that
have such an agreement are Barbados, Canada, Israel, Jersey and Guernsey, Mauritius,
New Zealand and the former Yugoslavia (i.e. applies to Croatia, Bosnia-Herzegovina,
Serbia, and Montenegro, and the former Yugoslav Republic of Macedonia).
Exception 5
Persons who were entitled to child benefit before October 1996 are not excluded from
entitlement to child benefit because they are subject to immigration control.
Source:
https://assets.publishing.service.gov.u ... _v13.0.pdf
So, if I interpret this correctly:
- If the child is British,
either parent is fine to apply (even the one who has NRPF on their visa)
- If one of the persons in the marriage is not subject to Immigration control (e.g British / ILR) and they are the sponsor of their spouse (Marriage visa, PBS dependent etc) then that should also be fine for the NRPF spouse to claim CHB, by virtue of their marriage to a person who is entitled to claim CHB.
IF there are other expert opinions that interpret differently, please let us know
. 
