Well... Firstly the mother sounds like an interfering nasty vindictive person! She obviously has ZERO respect for you, and wants to destroy your relationship.

But to be honest, your partner obviously has MASSIVE mental issues, like REALLY BIG ONES.

Psychotic episodes are not just a small deal. I mean his mental health characteristics sound so significant it is hard to imagine that it is good for children to be exposed to him.

He has not work for 10 years! He is essentially a psychiatric invalid.

I don't know why you consider that he can be a supportive partner and a good father, he has SEVERE ISSUES.

I personally would not be involved with someone with such extreme problems, but if you must be, well he could still be somewhat ill and perhaps his opinion of your relationship will change if he gets better. Of course, maybe he is not mentally capable, and maybe his mother is manipulating his vulnerable state to get him away from you.

If he is suffering from psychotic breaks it would be useful to know what is diagnosis is.

I can't comment further without knowing a diagnosis, but his problems sound very severe and long term.