A fund set up to help those in need underspent by £1.5 million in the last financial year, according to new figures.

Grants totalling £35.8 million were awarded through the Scottish Welfare Fund in 2014-15, amounting to 96per cent of the available £37.3 million.

The pot included £4.3 million carried forward from the previous year, when only 88per cent of the available cash was spent.

Applications increased by a quarter in the last year, attributed to a greater awareness of the fund after a slow initial take up.

The latest figures show nine councils went over their allocations by a total of £500,000 by supplementing spending from their own funds, while the remaining local authorities underspent by £2 million.

Dundee City Council spent 113per cent of its budget while Aberdeen City and Highland council areas spent just over 100per cent.

Shetland spent less than half of its funds, while Orkney and Aberdeenshire spent less than 70per cent.

The fund was launched by the Scottish Government in April 2013 to replace community care grants and crisis loans, which were abolished by the UK Government under its welfare reform programme.

Since the scheme began, more than 150,000 households, including around 50,000 families with children, have been helped.

In the latest year, councils awarded £28.4 million in community care grants, which aim to help people live independently.

Over the same period £7.4 million was paid out in crisis grants, the majority for emergency food and energy costs.

A total of 69,000 households received crisis grants while community care grants were paid out to 43,000 households.

Around half of the grants were awarded to applicants living in the most deprived areas of Scotland.

Welfare Minister Margaret Burgess said: "These grants are a vital lifeline for people in crisis with more than 150,000 households benefiting from a share of the £65 million Scottish Welfare Fund.

"It is helping people in desperate situations buy everyday items like food, shoes and beds, and keeping them afloat during worrying times.

"The Scottish Government will continue to work with councils to publicise this scheme and reach those who are struggling to be able to afford items that many of us take for granted."

Councillor Harry McGuigan, community and well-being spokesman for local government body Cosla, said: "There is a growing number of people using the fund to buy the most basic of items like food, beds and cookers.

"Councils and the advice sector make sure those in need know where to get this vital help.

"Given the planned social security cuts, the fund will come under considerable pressure as more people require help over the next few years."

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Ms Burgess said the remaining underspend has been added to the 2015/16 budget and will be carried into the next financial year.

The minister said: "The fund is delivered locally on behalf of the Scottish Government by all 32 local authorities. Whilst there are regional differences in take-up, across Scotland the number of Community Care Grant awards have increased by 31per cent and Crisis Grant awards have increased by 25per cent.

"Under a voluntary agreement between the Scottish Government and Cosla all 32 local authorities have been delivering the fund on an interim basis since it launched in April 2013.

"The Scottish Government is currently consulting on developing permanent arrangements, which come into force in April 2016. As part of this process, options for allocating funding to local authorities will also be considered, taking into account variations in local demand."

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