sattelment visa after 2 years spouse visa

Dear all, I am having a struggle understanding the immigration rules. I from South Africa and I went to the UK under the working holiday rules. I then genuinely fell in love to a British citizen and moved together. When my visa was about to expire we then decided to go to be married in South Africa and from there apply for the relevant spouse visa which was then granted with no issues.
Today this visa is expiring and I was told to apply for a settlement visa. But reading through the application I have noticed a question which asks if my husband is working and how we live 9renting or council accommodation).
Unfortunately my husband was ill before I met him and out of work, he was also receiving disability allowance and we both lived in the flat assigned by the council to him.
Off course we must state other ways as we worry that based on my husband profile I may not be granted any settlement visa. Is it so?
We both worry very much what to say as we truly committed to one another.
Another problem is the fact that he changed his name time ago (the name we married on) but all his benefit incomes are registered under his old name which he had to keep as he feared it may have caused more confusion. Therefore all documents staying his income and so on are on a different name other then his new one…

What can we do? I have been however advised to state that he isn’t working due to illness but not in receipt of any benefits. Further to state we live in a rented accommodation other then council.

I know it is difficult to advice, but any suggestion is welcome. The best would be if he could go back to work like yesterday for the time being…but you know how difficult that can be…especially when you can’t walk and move very well…Any advice is welcome, or email me directly at [email removed]

Emma crab 10 Aug 2008, 10:15 - Report