I know this wouldn't help with her discomfort, but you could put an elizabethan collar on her so she can't lick.

You also can give her benedryl for her itchy skin. Dosage 1mg per pound of dog.

I just did some research online. Is it "Lick Granuloma"? It seems to be very difficult to treat (one site says "Treatment is usually lengthy and often only minimally effective") But most sites say long term antibiotics really help. But if you can't afford that right now, I found this little bit on home remedies for it:

"If this dog is not on a venison and rice kibble, that is the only kibble I would use with this type of a problem. Also giving Beta Carotene capsules (buy at grocery store) may help and vitamin C and E supplementation. Lots of fresh air and sunshine also tends to help. I would never put this type of dog in a kennel or keep it confined in a house where the dog may not receive enough sunlight. Aloe Vera jell and Flowers of Sulfur (have your pharmacist order it in) mixed together with some Witch Hazel to dilute it enough to spray from a spray bottle onto the lick spot several times a day may assist in the healing, but repeat involvement would probably keep cropping up due to an internal weakness." (from this site)

Also, exercise might help. And the oatmeal shampoo too. Good luck!!!