Well, my thoughts are: Of course CAB will request a copy of your husband's passport and they will see it in there no recourse to public funds. I would think of them as professionals that if that is not allowed to be granted they would tell you. See them again or give them a call to clarify this issue to give you piece of mind.
with regards to your application, then you will have to show them you and your husband are able to support yourselves and your children.
