Second, I don't believe his question was "just b/c he was worried about not having a place to live."
Forgot to address this. These were his words, not me mindreading. If I wanted to mindread, I would say, he was saying that he wants to leave here, but he can't "officially" because OW is on benefits. As I stated, it is going to be difficult for me to claim, if it "looks like" a partner is living here. So here is the catch 22, clearly I am second guessing this one, but he knows that if he "moved in" with OW, she could lose her benefits, but unless he no longer lives with me, I can't claim!