To not know how best to use this money (for DC)?

[Flumperama]

Name changed just in case this is outing. In AIBU because not sure where else to post...

2 DC (6 & 4) have been left, over the past few years, about £160k (from GPs). It's currently invested, and we're happy with that side of things. However, we're not sure what the best use of that money is, in terms of setting them up for the future. Both are in a good local state primary (that we're happy with). Local secondary state option ok - I hear both good/ok and terrible things about it! I'm ambivalent about private schools, but am worried about the encroaching impact of cuts on state secondary education (in terms of scope of subjects, teachers, facilities, etc).

For context, our household income is approx £60k a year. Unlikely to go up massively in the next 10-15 years due to the nature of our jobs.

Options:

1. Private secondary (obviously it won't cover the whole cost, but we could, I think, make up the rest from our own savings + economising on household expenditure).
2. Use it to pay university fees/ living costs / etc
3. Split it between them for deposits for their first homes (although we potentially have another source to be able to do this when the time comes)

I guess the question is - which one of these things helps someone on their way in life the most?

(p.s. I realise we/they are really fortunate to be in this position)

Personally, I'd Leave it in a series of long term investments, and stipulate that it can be accessed till they are 25/28.
Definitely wouldn't waste it on private school, or even uni. And I would lock it down until they are mature enough not to fritter it away.
Both my boys are in line to inherit substantial sums from grandparents in wills, and we requested both of our parents stated clearly that they had to be 28 to receive it. We did that because we've seen several of our friends kids, and friends of ours inherit at 18/21 and they ALL blew the lot.

It is unclear whether the money was left to you or your children.

If your children then you can't really do anything with it until they turn 18 - just hold it in trust. I would hate to hand this kind of money over to an 18 year old though but absent a trust, that is what will happen.

If it was actually left to you, then you can do whatever you want. If it is in your own names in your accounts you may think of it as your children's money but the government and the banks and everyone else will consider it yours from a tax/income/assets point of view.

To answer the original question I would keep it for a house deposit.