Thank you all. Taking the phone away after school would seem like a punishment and she feels safer with the phone on her, in particular since the 'break in' (probably Toad, someone tried to open the front door with a key at night). This is why I am not doing it. I will ask her not to text though after school, unless it's for a reason and she will have to ask me before. DD is ten now. I have to be consistent with this.
Of course I don't close down any friendships. In the case of the other girl, she started bullying DD and this of course brought the friendship to an end.
DD has had counselling previously, but has been discharged after six months of counselling.
Jux I am sorry to hear about your DD and about the hard times your family has been having. This makes Toad sound like a walk in the park and myself utterly pathetic.
As much as I don't want to carry on talking to the school about this, I suppose I don't have the choice.
I am totally selfish here. I have tried before to help this other, previous friend of hers and invited her all the time and she came for entire weekends, it all ended in tears, as we ended up spending our entire time helping this family out and they took advantage. In the end, we had to go NC and block them. Basically we went from one abusive situation into another. Therefore I will not encourage this friendship and make excuses for not inviting this new friend. If they spend time together at school, that's enough for now and no texting after school. I looked through the texts after I got concerned and I am not impressed with this girl's use of 'language' and other premature behaviour. .
DS is more 'sensible' but of course he is older and he knows to choose people to talk to. DD thinks she can confide in her friends, I suppose and so does this other girl. DD doesn't want to talk to me about all this too much, because she knows how worried I am, this is what she said to her counsellor and she doesn't want to talk about 'him', as she refers to her father at all at home. She thought she had identified him as the person who tried to break into the house, from where she was looking and she is now even more frightened, to the extent that she doesn't dare walk past the front door once it gets dark and either DS or I have to come with her and stand in front of the downstairs loo.
So in conclusion, someone has to be found who she can talk to at school or / and a new counsellor.