YOUNG Scots aged under 30 are the most likely to be poor, with those who rent privately at greatest risk, according to new research.

A study found 25 per cent of under 30s were in poverty and it was the only age group to have seen an increase in poverty levels since 2003.

The report Monitoring Poverty and Social Exclusion in Scotland 2015, says one in every eight under-25s is unemployed, twice as high as any other age group. But 43 per cent of this group live in poverty despite the fact that they are in a household where at least one adult works.

The New Policy Institute, which carried out the research for the Joseph Rowntree Foundation (JRF), said the findings demonstrated that work alone was no longer a reliable route out of poverty.

The study also suggests housing costs are a key cause of poverty, due to the shift towards private renting. Over the last 10 years, the proportion of homes in the private rented sector has almost doubled to 15 per cent, and the average private renter spends almost a quarter of their income on housing. Those in homes for social rent spend 18 per cent, while owner-occupiers spend on average 11 per cent of their income on mortgage payments.

Child and pensioner poverty rates have fallen from 33 per cent for both groups in 1996-97 to 22 per cent and 11 per cent respectively in 2012-13.

The report says 920,000 people in Scotland lived in poverty in 2012-13, 230,000 fewer than 10 years before.

Julia Unwin, JRF chief executive, said: "Falls in child and pensioner poverty over the past decade in Scotland show that poverty can be reduced. But sustained action must be taken to stop a lack of high-quality work, and a shortage of affordable homes from trapping a generation of young people in poverty."

JRF is calling for a number of measures to tackle poverty in Scotland, including encouraging employers to pay the living wage, and increasing access to in-work training for low paid workers. It calls for more affordable good quality homes and says benefit sanctions should only be used as a last resort.

Citizens Advice Scotland spokesman Keith Dryburgh said: "The numbers of young people hit by poverty is worryingly high. Today's report is right to highlight the fact that many people who are in work are also caught out by things like low wages, high prices and zero hours contracts.

"A big concern for us is that many people who find they can't make ends meets are still turning to high-interest credit like payday loans. This really is not the right option."