This happened to me, they also claimed i didnt have right to reside even though lived in uk for 21 years from age of 5. they took 5/6 months messing me about. in the end i applied for perm residence which was back dated to 2002 and applied for citizenship straight after. Have gained britsh citizenship. But am £20,000 in debt because i was not given universal credit and was unable put my daughter in nursery without help therefore unable to work. The DWP are breaking the law and litrally taking the **** out of people, I am still debating whether or not to go to press with my story as I feel its happening to a number of people.