Thanks for the replies. So as I am the sponsor for my families UK trips, its similar paperwork that I need to provide for their Schengen application?.
I'm thinking to get the UK visas in place first, then apply for Schengen straight after, so at least then they can see travel history for UK over past 10 years.
Is the rule about having to enter the Country that you got the Schengen for first implemented, or could you say apply at the Itailan Embassy, but enter say Netherlands first?.