CHARITIES have reported a steep rise in the number of people seeking cash to set up food banks amid concerns that poverty is becoming institutionalised in Scotland.

Charitable funders, including the Big Lottery Fund, the Scottish Community Foundation and the Buttle Trust, are alarmed at the level of need reflected in their workload, with many blaming the development on cuts to public services and welfare reform.

The Scottish Community Foundation (SCF), which acts as a broker between those seeking funding and those who want to help, has asked philanthropists to consider whether they should prioritise the needs of people close to the poverty line.

At its annual philanthropy debate this week, chaired by the broadcaster Sally Magnusson, the SCF asked panellists to reflect on the fact that food banks are booming in a "failing" economy.

Giles Ruck, chief executive of the body, said: "SCF has seen a growing number of applications from organisations seeking to fund food banks."

He gave the example of the charity Women in Sport and Health in Clackmannanshire, which applied for funding for provision of food parcels even though it exists primarily to get isolated women involved in physical activity.

"Whilst this was not the charity's core service, the application came as a result of an increasing awareness that there was a need to provide essential food items for families and the elderly," Mr Ruck said.

An SCF spokeswoman said the foundation was also seeing an increase in the number of groups looking to establish breakfast clubs for children and lunch groups for the vulnerable, with 14 applications received this year. In 2009, just three applications for lunch groups were received.

Anne-Marie Peffer is manager of the Buttle Trust in Scotland, which provides small grants to individuals on the poverty line.

She said the Trust normally rejects one in three applications, but this year at one stage had to reject 75% of claims. Ms Peffer added: "It has been gradually increasing over the past five years, but in the past six months there has been a significant difference. There is an increasing need for basic items that people don't have any means of getting, such as replacement clothing for children, or beds."

While it does not supply food, the Trust has begun logging the number of people it assists who are being helped by food banks.

"The general public just don't seem aware of it," Ms Peffer said. "I would hate to see it becoming part of the landscape. People should at least have enough to put food on the table."

A spokesman for the Big Lottery Fund said it had seen an increased number of projects applying for emergency help. He added: "It's clear that there is a demand. Our investment has so far helped local projects provide a range of support from emergency food packages to developing financial skills and giving advice to those in need."

But the BLF is concerned that any support is unsustainable.

Martin Sime, chief executive of the Scottish Council for Voluntary Organisations, said: "The fact that feeding the hungry and destitute is now the fastest-growing part of the voluntary sector is a shocking indictment of any claim we may have had to be a civilised country.

"Philanthropy must meet immediate need but we also need to support people so they can help themselves and each other."