urgent advice needed please!

client has ILR, is living in single hostel accomodation,
his fmaily have arrive in the UK have no recourse to public funds, they have nowhere to live together. The council won't accept them as homeless because until they get child benefit and CTC they are 'invisible for housing purposes, and it seems to us that client isn't entitled to CB or CTC because the children don't live with him....

he is currently awaiting a decison on his own IB/ IS claim so at present has no money or any source for borrowing money for a private accomodation deposit.

seems like there's no way out...have i missed something obvious? would welcome advice or suggestions, many thanks