Any ideas as to what is causing the spike?, I did watch my angel swim towards the bottom of the tank and her gills were red and irritated, once I turned the filter back on she perked up and seems to be okay.
I am worried that the ammonia is killing the three that survived.
This is not easy to answer. First, if this is the ammonia spike (I assume), what are the test numbers for ammonia in the tank water? And what is the pH now (of the tank water)? Also, test the tap water on its own for ammonia jut to be certain.
Do you have any live plants in the tank?
There are other issues here that may well be part of the fish deaths. But let's deal with issues one at a time.
Will adding drift wood help at all?
No, so far as water chemistry is concerned.