Welfare de pendant claimed on taxes?

Can a child on welfare be claimed on someones taxes? My mother in law and my retarded husband made plans of their own to go behind my back and claim my daughter on HER income taxes. My husband does not work and I got laid off so we turned to receiving cash aid from the government. She does not support my daughter AT ALL. Has NEVER bought diapers, food, clothes, etc etc. Of course this is an issue between me and my husband but I also want to know what will happen since we are recieving welfare. Will the government notice fraud? Against who? Me or her? If nothing happens, WHAT CAN I DO?