Okay guys I think we can pull together to try to help and advise, it might help if we knew the area this lady lives even the County would be a help, I personally am up in the west midlands at this moment and have lots of time on my hands.

1. It maybe an idea to pay a visit to the local Police first of all as surely its an offence to withhold someones passport, basically that's theft.
2. The Child support agency should be another place to call, I know they have a bad name in some quarters, but they are able to deduct monies from the father of these kids, so that he rightfully has to support his dependants.
3. Then when this lady receives her eviction notice that's when she needs to get to the local Council Housing Office.

The big problem here is that she has not applied for her ILR, had she done this then she would be entitled to the usual Benefits ie Housing Benefit, Income support etc etc, because she has not obtained ILR then it muddies the water somewhat, and those entitlements may not be available to herm, if my assumptions are correct then this lady and her kids may have to fall back on Charitable Agencies, Social Services etc etc

If I'm anywhere near, I would only to gladly offer any help or further advise if needed.