Currently the immigration status is that H is a British National while W’s immigration status is that of an illegal immigrant. I do not understand why W & B had not sought to enter under the Immigration Rules part 1 & 8 Boarder & Immigration Agency refers. Then again we are not aware of the length of time she has been in the UK or her history.
http://www.ind.homeoffice.gov.uk/policyandlaw/immigrationlaw/immigrationrules/
Even if W & B had entered the UK under the IR part 1 & 8 they may have only been given limited leave to remain and no recourse to public funds so there may already have been an indirect breach of immigration rules, see paragraph 2 of IDI’s Ch 8 s1&2.
I would find it difficult to conceive that W & B would wish to go undetected however coming clean most certainly could result in deportation action taken (subject to the period of time already spent, and submission on appeal), however as I do not have direct access to my immigration references, I could give a more definitive answer later. Although one could argue Art 8, the counter argument would be that of, leave and enter legally.
As for HB/CTB any claim by husband will have to include that of W & B, as under current HB & CTB rules W cannot abstaining from such a claim made by H, as such is automatically assessed with H. Therefore it is possible that even if H had LLTR any future application for ‘settled status’ could be if judged strictly to the rules be refused an application for an extension. Though could not be removed due to Human Rights issues Art 8, right to a private and family life.
Further having looked at the application form for ILTR, it appears that they only ask whether the applicant at the time is now receiving public funds that being either applicant or partner. It does not enquire whether or not the applicant had previously received public funds. See url below question 7.6 refers. However there maybe the onus on the applicant to have voluntarily disclosed any such facts at the time. There is however an onus on public authorities to report to IND/BIA of such claims. The public funds are IB-JSA, HB & CTB, while it is commonly accepted and understood that CTC/WTC are not considered as public funds, see 5.1.7. of IDI’s Ch 1, s7.
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