Applying for ILR, my kids born in the UK during my Tier 2

When me and my wife apply for ILR from Tier2, what shall I do to my kids who were born in the uk during my Tier2 stay?
- apply for ILR??
or
- apply for citizenship right away??

I got another child born outside uk, so my plan is applying myself, wife, elderly son for ILR then Apply for neutralisation for the kids born in the uk. does that sound right??

Once you have received ILR, you can apply to register the UK born children on MN1 under section 1(3) which as an entitlement under the nationality act. Once you receive their certificates of registration, you can apply for their British passports.

Children are Registered as British : Adults are Naturalised as British!!