Nicola Sturgeon poverty adviser calls for end to council tax freeze

In a recommendation that challenges the SNP's continued support for free prescriptions, free bus travel for pensioners and free tuition for students, she also called for universal services to be reviewed to ensure "public money is being spent effectively to meet key policy goals".

Questioning universal benefits for OAPs, which also include winter fuel payments, she wrote: "Increasingly, pensioners are enjoying the benefits of a strong economy of the past, and carry the least burden of current weaknesses".

Ms Eisenstadt, an Oxford academic, was appointed Ms Sturgeon's Independent Advisor on Poverty and Inequality, last year and has spent six months reviewing government policy.

On council tax, she said devising a new system would take time but urged ministers to consider ending the eight-year freeze in financial year 2017/18.

She said there were "disagreements about the equality and poverty impacts of the freeze" but highlighted the £2.5billion cost since it was imposed.

She also warned Scottish Government funding to top up council tax benefits did not benefit many low paid workers.

In her eagerly anticipated report, titled Shifting the Curve, she wrote: "I do not have a clearly worked out position on what the new system should look like.

"But I do recognise that this is a central moment of political decision, an opportunity to introduce a much more progressive system, one that will have important implications, particularly for working households at or just above the poverty line."

She added: "Of course, any reform of council tax is likely to take some time - and it's worth taking time to make sure the system is going to be genuinely progressive and effective.

"In the meantime, the Scottish Government should consider ending the council tax freeze from 2017/18 onwards.

"Many stakeholders told me that this would make a contribution to protecting the public services that are particularly supportive of families in poverty."

The call will pile further pressure on ministers to outline plans to reform council tax before the election.

A government-backed commissioned last year suggested a hybrid local tax, involving a property tax and a local income tax.

A number of councils have recently threatened to ignore the freeze, which is subsidised by the Scottish Government, and put up bills to protect local services

In all, the report made 15 recommendations, including stepping up the drive to encourage firms to pay the Living Wage.

She also said ministers should make the most of Holyrood's new social security powers but advised them to "proceed with caution in the exercise of those powers, given the complexity of devolving part of what is a heavily integrated UK benefits system".

Her report said "at all levels of government more could be done" to tackle poverty.

On universal services, she wrote: "There's ongoing debate about which public services, and which income transfers, should be targeted, and which should be universal.

"In times of financial constraint, it's particularly important to test whether . Universal access can sometimes be no more expensive, avoiding the bureaucratic costs of testing eligibility.

"However, universal can also mean spreading a limited budget too thinly to help those who need the service the most, and making little difference for those who need it less but choose to use it.

"Irrespective of the fiscal climate, tax-payers' money should be spent on trying to level the playing field, not, as is sometimes the case, reinforcing ongoing disadvantage."

Launching the report, she said: "I’ve been struck by the genuinely open and constructive approach that people have taken in engaging with me in my role as Independent Advisor.

"The key message for me is that everyone has a role to play, local government, the voluntary sector, the Scottish Government and people in poverty themselves, who clearly have the best understanding of the challenges of living on a low income."

Her report was welcomed by the First Minister.

She said: "When I appointed Naomi to the role I was clear that she would work independently and be frank and challenging in her scrutiny of not only the work the Scottish Government was doing to alleviate poverty and inequality, but also what more can be done.

"I thank Naomi for the work she has carried out and welcome the report that she has published today.

"We now need to study it and look at what we’re doing well and should continue to do, and where we can improve.

"We will respond formally to the report before the end of March and set out how we intend to take forward its recommendations."

In response to the adviser's call for greater emphasis on early learning, Ms Sturgeon announced £1 million of funding for up to six flexible childcare pilot schemes.