Why is everyone blaming her, or her family? She was very clear about who she blamed.
It's very frightening when you are being pushed around by the authorities, especially when you are vulnerable. She clearly couldn't see a way out, the poor woman. Being powerless is miserable and terrifying.
She wasn't offered £2k to move, she was told that would be reduced by any repairs the council deemed necessary - so yet again she was at the mercy of the authorities. Being told to move to a place with no transport is not a solution.
And if she was depressed, how does booting her out of her home help? Shelter is a basic human need. A safe, permanent home should be the right of everyone, especially in one of the wealthiest countries in the world (IIRC even after the financial crisis we are still sixth or seventh).
Bullying the poor and vulnerable is despicable. Not that any of the government ministers concerned will give a toss, none of them have a clue what it's like to be anything other than a millionaire. They seem to think it's a badge of pride to give the poor a good kicking.