I think (although I am happy to be proven wrong) that in order to satisfy anyone who may wish to investigate, he registered himself as renting a room from a friend. This circumstance, once set in motion, continued, raising no eyebrows or red flags, up to the point where the rules changed.
DL was then faced with 2 choices;
1. ceasing to claim, which 'may' have raised eyebrows, in some quarters - he's living in the same place with the same chap and now he's not claiming any more ....hmmm, I wonder why and what is could possibly mean ?
2. continuing to claim, which maintained his carefully constructed facade, protected him from intrusion but was a deliberate act of 'omission'.
Unfortunately, for him and, possibly, for us,he made the wrong decision.
I don't know the detail of his 'utility bills' however, from what you say, bibblebub, that 'does' seem to be unacceptable.