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Dont know where we stand?

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Sorry for a long post coming, and this is a last avenue to get some help/advice/real answers ...
Was a single mum on income support etc. Now my partner has moved in with me, we have one child (8 weeks old) together and I have a son (3.5 yrs) with my ex.
My partner moved to England in June 2012 from the Netherlands.
He is still married to his ex, (divorce proceedings just started) and they own their home in the Netherlands (due to be sold after the divorce is settled and she finds somewhere else to live, she has the legal right to stay in the home for max period of 6 months)
I stay at home to look after the kids
He works with an income of £7.77 per hour, 40 hours per week without overtime, sometimes does a few hours over if they need him, but not a regular thing.
Our rent is £500 a month, council tax £110 plus all the other bills, shopping, getting to work etc, His wage doesnt cover the outgoings.
I'm being told that if he didn't have the house in Holland we would be entitled to Child Tax credits around £90 per week, and housing / council tax benefit adding to approx £50 per week.
The house is actually in negative equity, so when it is finally sold he will end up owing a few thousand euro's to the mortgage company!!
Someone pls tell me there is a way round this, surely they cant count this house as savings on our forms??
I wanted us to start a new life together with our son, while at the moment seems the only option would be for him to move back out and I go back to being a single mum on income support :o
I should add, I am not work shy and would try for work tomorrow, but my partner works different shifts everyday and no where would be flexable enough to fit me in around his work, ie I can work this eve from 8pm tomorrow morning til 10am but not the rest of the week til sunday when hes off so i could work all day, next week will be totally different!!

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