A polish lady is going to poland for a hoilday to claim back her taxes , she is livig in a council property and working for an agency can she be deported from england

You can report anyone you want.
Whether they will be deported is just a guess.
Better to start locally, with the council and proof of the job. Maybe they know already.

Report them to the council, to the immigration and it is up to them.

As a European citizen it is her RIGHT to live where ever she wants within the bounds of Europe.
That's how it works, she is NOT an illegal, but perfectly allowed to be in the UK and work.
YOU can go to Poland and do the same, if you so wish.