Simplistic, probably, your experience being on a different level to mine, and you knew many of the people personally. Including their stories. But IMO you tend to overcomplicate things in order to justify the way of life of people in need, no matter what choices they make in life. I more or less get your idea, those people deserve dignity like everyone else, but I say there's a limit to everything.
The case I am talking about hasn't happened in the UK, so it is not the Tories' fault. About the TV set: it was of a size I had never seen anywhere before, not even in a shop. Had you asked me to buy it somewhere, I wouldn't have known what to do. TV can be important to some people, and they deserve to have a good set, but not one at 10 times the usual price while happily expecting the bringer of free food to pay for his fuel.
I have never rented anything in my life apart from my flat, not even leased a car, so I know little about it. I don't know about TV sets, but this reminds me of the guys at the pub boasting about their BMW X5 being 'cheaper' leased than bought. They almost want to make us believe that they got their beemer for peanuts. Leasing (for private users anyway) never comes 'cheap'.
A 5-Liter Chevy pickup is not an appropriate vehicle in my city centre, no matter the situation the driver is in. It is just a nuisance for everyone including the driver himself.
Monthly rates were expensive at the time, especially so if you have 9 of them running simultaneously (for the guy and his wife, so seven lying around for nothing), because you always crave for the latest Nokia or whatever, and don't see any other way than a contract in order to finance it.
I have a friend who, like you, has worked at many social institutions, including state-run ones. To her, her 'clients' are victims in every single case. I mean, my friend is probably in the right place and she does a lot of good things for many people, but IMO taking every bit of personal responsibility away from thee people is going a step too far.