UK only please. Squatters rights with children?

I've recently broken up with my partner (we've been together 9 years). I'm finding it really difficult to be allocated a council house for myself and my daughter, and the only one I've been offered is in a revolting estate about 10 miles away from her fathers house and 12 miles away from her school and I don't drive. I've seen a really beautiful old council house which has been derelict for 4 years, if I squatted it with my daughter would I have any rights to stay?

You'd have the right to stay until a court order was obtained to get you out. That would not be very long.
You'd need to be there for more than 12 years continuously to acquire any rights over the property.
A slightly off the wall suggestion might be to approach the council directly and offer to take over the property and renovate it on either a shared ownership basis or reduced rent.
If you were thinking of making such an approach, it would need to be very carefully thought out, documented and costed so they don't dismiss you as just another random nutter.

The law on squatting
Squatting itself is not a criminal offence. However, it is illegal to get into a property by breaking in or damaging windows and doors. You could be arrested even if the damage is minimal. If you find a property that you can get into easily, you reduce the risk of running into legal problems.

In some cases, squatters can also be prosecuted for other offences. There is a risk that this could happen if you don't leave when:

the landlord gets a court order, or
a person who normally lives in the property, or has a right to move in (such as a new tenant) asks you to leave


more info here

Probably after X amounts of months or years. But don't forget it will have no utilities so how are you going to eat, bath, stay warm etc..

You'll both end up ill. This really is not the way to go.