Hi Fayyaz,
In the Long Residencein the UK category, the immigration rules do not allow dependents, so their applications are likely to be refused if they are applying with you. ( as mentioned in SET(O) application form)
"If a child does not become a British citizen at birth (as none of the parents had been settled), he or she may be entitled to registration as a British citizen later. This will happen if either parent becomes a British citizen or legally settles here before the child is 18; or if the child stays here until age 10."
So you can register your children as British Citizens as soon as you get your own ILR. Then they can apply for their Naturalization when they turn 18 years old.
I have a question from you, just for my own knowledge: To which cases do they give Long Residence, like yours?
Good luck!