Will Using Cortizone Cream Help Cure Red Blotches On Skin?

I have itchy and tinging in my forarms , but no where else, About 6 months ago me and my whole family suffering from scabies...and we had to do a couple of treatments of permithrine cream5%, I think that cream dry out my skin really bad ..because now i have real bad dry skin, my wife has the same itchy and tingling in her arms too.

My 2 year old daughter has bad red blotches on her back and belly, she has small sores on her hands and toes and can not stop itching at night, we have use cortizone cream and Aquafour cream ...what elsse can I do ?, we notice when we use ice packs on our arms , there is relief, and do you know what it could be?