You should reapply for Family Leave to Remain (O) using a fee waiver. If your fee waiver is accepted, they must grant you recourse to public funds when they grant you Family Leave to Remain.
http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary
Family life as a parent of a child in the UK
http://www.ukba.homeoffice.gov.uk/sitec ... iew=Binary
Where an applicant is receiving support from a Local Authority under section 17 of the Children Act 1989 or section 21 of the National Assistance Act 1948, the Local Authority will have conducted their own assessment of destitution before making a decision to grant
support. In many cases it is likely that we will reach the same conclusion as the Local Authority on the question of whether or not an applicant is destitute, but this may not always be the case.
Consistent with the provision of support to asylum seekers and their dependants under section 95 of the Immigration and Asylum Act 1999, a person is destitute if:
a) They do not have adequate accommodation or any means of obtaining it (whether or
not their other essential living needs are met); or
b) They have adequate accommodation or the means of obtaining it, but cannot meet
their other essential living needs.