Hi Lorraine
Although I've never caravanned there I agree with other opinions expressed about Morecambe.
The area north of Morecambe around Silverdale is lovely if you like unspoilt countryside. Holgates, already mentioned is in the same area but VERY EXPENSIVE. I've not stayed there although I did look recently!!
A much cheaper alternative in this area is Gilbratar farm near Silverdale. This is quite a basic farm site but lovely sea view. The toilets are clean and adequate and the Steward friendly and helpful. He organises special events in a big marquee some weekends. There are loads of places for kids to play including the sites own woods with tree swings, beach (a bit muddy and beware of the tides) and caves to explore. This is NOT a commercialised site or area in any way, shape or form.
It is, also, possible to visit the Lakes by car for the day. Carnforth is a short drive away and has a wider range of shops, including a brilliant secondhand bookshop, the re-vamped railway station, with displays about the film "Brief Encounters" which was filmed there, and 2 larger supermarkets.
There are lots of lovely walks nearby. Silverdale village has a small supermarket, 2 or 3 pubs and a few other shops. Nearby Arnside has some interesting shops lovely views and walks and a super chippy. See here for reviews praising the site. (Mine has yet to be posted but I agree with all the positive comments)
http://www.ukcampsite.co.uk/sites/reviews.asp?revid=2808
Hope you find a site to suit you. Incidentally the above website's campsite search facility is brilliant for finding campsites and has personal reviews from people who've visited them.
Have a good holiday
Tim