POVERTY in Scotland is a "scandal" and should never be allowed to be considered inevitable, Nicola Sturgeon has told anti- hardship campaigners.

The Deputy First Minister, who is almost certain to succeed Alex Salmond as First Minister next month, said she would be looking at the new powers promised to the Scottish Parliament to tackle inequality and poverty.

Ms Sturgeon addressed the Poverty Alliance annual conference as part of Challenge Poverty Week at the City Halls in Glasgow, and said that, post-referendum, politics must not return to business as usual.

One in five children are living in poverty and the Poverty Alliance said what was required was a comprehensive strategy, regardless of the outcome of the Smith Commission on new powers for Holyrood.

Ms Sturgeon said she wanted to capture the engagement of the public during the campaign to improve democracy and decision making in Scotland. The Glasgow South Side MSP looked back to the referendum campaign and said the lesson was that both sides demanded and now expect change.

She looked ahead to new powers for the Scottish Parliament from the Smith Commission and said they can be used to benefit the most vulnerable in society.

Ms Sturgeon said: "I still hold on to the idea that one day we won't need a Poverty Alliance.

"The Poverty Alliance work is more relevant and urgent now than it has ever been. Poverty levels are far too high. They are a scandal - let's not mince our words. Poverty should never be accepted as inevitable.

"What is more shocking is the fact we are going in the one direction. UK Government policies seem totally unacceptable."

Ms Sturgeon is likely to be the First Minister of Scotland when the new powers are anticipated to come into force next year, but she said the Westminster agenda continues to damage to Scotland.

She said the new powers were not a "magic wand" and admitted neither would independence have been.

In her opinion the best argument for more powers was Chancellor George Osborne's Tory conference speech and his announcement of another £2.5bn of cuts coming our way.

She said: "Let's not under- estimate the scale of that. That's just the start of the next round of cuts.It is not just the scale but how they are being targeted.

"The richest 10% have seen a 3% increase in income, while the poorest 10% a reduction of 8%.

"Poverty has increased in Scotland for the first time in a decade and it is estimated 100,000 more children will be in poverty by 2020.

"It is not acceptable to me or to the Scottish Government. It is a direct result of policies implemented by the UK Government."

While the Scottish Government has argued for full fiscal responsibility for Holyrood, she said that welfare had to be devolved, too.

She said: "Any package of more powers that doesn't include welfare means we will be missing a trick

She added: "One of the things that frustrates me is the amount spent to mitigate policies we don't agree with. We have spent £35m on mitigating the bedroom tax, and £35m is a lot of money if it is used better. You have to spend every penny you have got.

"We have got to make sure we build on the last seven years and continue with the early intervention approach and a strong child poverty strategy.

"Almost every decision we take: does it help or hinder efforts to tackle poverty?

"The Scottish Government will always look at providing resources, but it's how we use those resources."

Labour, meanwhile, criticised the record of the SNP Scottish Government on poverty.

Welfare spokeswoman Jackie Baillie said: "It's welcome to see the Deputy First Minister declare that tackling the scourge of poverty will be her top priority if elected First Minister in November.

"However it is disappointing to note that her rhetoric doesn't match her record. Nicola led for the Scottish Government on poverty whilst Health Secretary, and retained the responsibility at infrastructure. In that time we've seen stagnation, and - from recent indicators - decline.

"We have a real lack of vision and action from the Scottish Government in tackling poverty and more powers can't solve the problems of inaction."

stewart.paterson@eveningtimes.co.uk