It's a bit of a vague query but here goes.
Your child will not be British unless it is born after you have been granted settlement (assuming you or your wife don't alreadyhave some residual right of citizenship).
You are generally not entitled to public funds. However there is a list of countries that are entitled to claim particular benefits including Child benefit. (most of these already have some kind of reciprocal arrangement with the UK - nothing's free in this world).
Some hospitals may try and charge you for the cost of postnatal and delivery services and any other medical related needs - although strictly speaking you should still be able to access these services. It can depend on how your doctor views the Hippocratic oath (as one once informed me!)
hsmp_victory, your friend's lawyer is talking through his or her behind. The 7 year concession for children (of overstayers) was removed on 9 December 2008. The concession for children (of overstayers) born in the UK and resident for 10 years is at the Secretary of State's discretion.
By which time sajid's child may well have it's British citizenship. If that entitlement hasn't been removed for all non-EU migrants by then..
