Graham,
I am in the same situation as you are. I am a British National and my wife is a Pakistani National and she will be applying for indefinite leave to remain in January 2011. We are also receiving both child benefit and child tax credits. At the time of making an application for both of the above benefits, I did make an enquiry from the home office and they were perfectly fine with my situation. As for the child benefit is concerned, only the name of the applicant appears so I do not think we should have any problems there as confirmed by the Home Office. The child tax credits is however, is a bit tricky since the credits are awarded to the couple and both the partners names appear on their database. I too would like to hear from someone who has already made an application based on these circumstances.
Since, your wife is not solely applying for and or receiving any benefits, I think you should be fine and so should I but you never know with the home office. The worst they could do is delay the application but I think deportation seems highly unlikely.

Amir

Dear

I am facing same situation and applying for ILR in Nov 2010. Have checked with home office about my circumstances and they are fine with the child benefits, working tax credita and child tax credits as far as my partner is the main applicant as such my name is as a fomality on the award letter of HMRC. Hope this work ofr you.

Thanks

Hi , I am on the same situation as well and it`s nice to hear that the homeoffice is fine with that,but the only problem that my wife is claiming housing benefit and she is not working,but I am working and no claim is in my name. hope I am not guna have problem coz of that 😞

Any info appreciated...

I am a UK citizen and my wife is a US citizen. I returned to the UK from the US after 8 years in Nov 2008 bringing my wife and son. We have been married 8 years, our son is a US citizen with UK Right of Abode and our daughter was born in the UK and has a UK passport.

It is nearly 2 years since my wife came here so we have to apply for her permanent settlement. My concern is the "no recourse to public funds" thing. As a UK citizen I claim child benefit and tax credits. Her income counts toward the award (or against it, whatever way you look at it).The tax credit people said this was legal as did the child benefit people. However, the application form says that we have to support ourselves without any benefits. We, like many families, rely on tax credits and child benefit to make ends meet otherwise we'd sink. We both have ok incomes with a very small amount of debt.

So my question is will any of this cause her application to be refused and can she be deported?

Thanks
GM