Shamelessly learned from another forum while researching something completely different. On Family railcards - from their terms and conditions:
Special notes regarding children^s tickets
Children aged under 16 at the time that the Railcard is purchased may still travel at the discounted child^s fare throughout the validity period of the one-year Railcard, or, for a three-year Railcard, up to and including the day before their 17th birthday. If the only child in the Family & Friends Railcard group is aged under five years, the Railcard holder must purchase a discounted ticket for that child in order for the Railcard holder(s) to qualify for the discount on their tickets.
I repost that here as it could be useful for some of our family members on "The Coffee Shop" at it seems to be one that some staff weren't aware of, let alone the passengers!