Thanks for your question.
To enable me to answer your question could you please respond to the following using the same numbering:-
How long has she been in England exercising EEA rights?
Thanks for your reply.
In order to apply for naturalisation she must first apply for Permanent Residence as a UK citizen.
Once you have both completed 5 years in the UK without being outside the UK for more than 90 days in any 12 month period then you can both apply for permanent residence to confirm your right to permanently remain in the UK. 12 months after receiving PR you will both be able to apply for UK citizenship:-
She should apply using form EEA3 and can do this now if she meets the aforementioned time criteria.
Once she has this she will be eligible to apply to be naturalised as a UK citizen 12 months after the date she receives PR provided she meets the criteria on the following page:-
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I will answer your follow up questions you may have.
The fees are the fees, there is not a great deal you can do about this unfortunately. The government won't fund non-UK nationals to naturalise as British I'm afraid.
Sorry it could not be better news.
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