The winner of Scottish elections needs to invest £500 million over the next decade in childcare as the bedrock of a major plan to reduce poverty, according to a thinktank.

The independent Joseph Rowntree Foundation (JRF) said political parties should tackle poverty using existing devolved powers.

It has set out how the government elected in May could use its current powers to reduce the attainment gap in schools, and encourage businesses to address in-work poverty by expanding access to high quality training in low paid sectors.

It wants the Winter Fuel Payment, once income tax powers are devolved, to better target social security and raise revenue for measures to address fuel poverty.

The proposals outlined in a report published today, include more free childcare available to parents with two year-olds. It suggested making it available all year, the removal of fees for the lowest income families and a cost cap.

Jim McCormick, the foundation's associate director for Scotland, said: “Poverty is risky, costly and wasteful, but is a problem that can be solved. There is an urgent need to act."