I am finding myself agreeing with some of Iain Duncan Smith's proposed indicators of poverty durhamjen although must confess I have not read the whole proposal (only what you have written).
My son and DiL had a huge (to them) debt problem (although perhaps a drop in the ocean to many others) caused by the fact that they simply could not afford to pay their gas and electric bills. My son lost his job and they were struggling along on my DiL's small wage and getting no help from anywhere. They ran up bills of a few hundred pounds that might just have well been millions to them as they could not pay. We were unaware at the time but the situation escalated and resulted in them having prepayment meters installed into their home which were pre-set to to collect the outstanding debt, plus fees, charges, and whatever else. The meters were set so high that they could not afford to have the heating on, which meant that they could not repay the debt (if you understand what I mean). With three small children in the house, if that is not an indication of poverty I dont know what is? Thankfully we have sorted the situation although we cannot have the bloody prepayment meters removed, so its a case of no money, no heating, no cooking. My family are quite fortunate in that I can step in to help where I can. My son is now back in work and I buy things on bogof offers and send them over, I help out with dinner money, milk money, childcare etc. They are both working and have less than most people on benefits which cannot be right.
Sorry for the rant.