Not good, and regardless of what others may have accepted in the past it is not acceptable anymore!
The days of putting up and shutting up are over, as has been pointed out the RAF is not the landlord anymore and has little if anything to do with the process. Your landlord has a duty to provide a certain standard of accommodation, that looks substandard and I would expect alternative accommodation until the problem is rectified, not wiped away. There is a damp problem with potential health problems that needs rectifying,
http://www.landlordzone.co.uk/pdf/Mould.pdf
First of all you must try and let the landlord fix the problem, see the complaints link
RAF Community - Guide to living in SFA
If the landlord doesn't take rapid action I would try the Station Welfare WO if you have one (they are excellent and worth their weight in gold
), Citizens Advice, MP, local press, National Press, TV consumer rights programs, etc. You are not embarrassing the RAF or Forces, this situation was forced on them years ago.
Once the landlord has had a fair chance to fix the problem then you are quite right to highlight poor standards which should not be accepted anywhere in the UK, especially where your family are concerned! This isn't an issue covered by the OSA and you should not suffer any consequences for speaking up, quite the opposite as a member of the Forces you should feel an obligation to speak out in an attempt to improve the situation for others.