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1. Yes, you can apply for permanent residence card for each of your children based on their five years living in the UK. This is a first step for obtaining UK citizenship for them, if that is what you want. Essentially, each of your children, if they don't have UK citizenship must have a permanent residence card for one year before they can submit a UK citizenship application.
2. Be aware that you should also obtain a UK permanent residence card if you wish to claim UK citizenship based on five years residence in the UK. So you should also be making this application for a UK residence card.
3. Here is the application form https://www.gov.uk/government/publications/apply-for-a-document-certifying-permanent-residence-or-permanent-residence-card-form-eea-pr
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5. You need to wait until 18.08.2016 before you can obtain a Permanent Residence certificate for your children. Essentially, time only begins to run from when they came into the UK. If they werent' in the UK before the 18.08.2011, then you cannot make an application based on that date. So, whilst you, personally, may apply from July, your children need to wait until August before they can make their application. This is because their five years continuous residence did not begin before then.
6. Children being in Wardship essentially means that the court adopts a protective role. However, that cannot alter the date on which they came into the UK. So, it has no bearing on when the five years begins, as residence is required. However, the court won't interfere with you obtaining Permanent Residence for the children. I would inform it. But it won't interfere here, as this is for the children's benefit.