DEPUTY First Minister Nicola Sturgeon has unveiled plans for £7 million of funding for services that support people affected by welfare reform.

The sum includes £3.5m for advice services, £1m to help local authorities and other organisations, and £2.5m for anti-poverty projects in 2014/15.

Ms Sturgeon said yesterday that single parent families would be worse off as a result of Westminster welfare reforms when she announced the funding at a One Parent Families Scotland (OPFS) drop-in centre in Glasgow.

She said: "It is vital vulnerable people in Scotland get the help and support they need during these tough economic times. Westminster's welfare reforms and the impact on the poorest in our society make this even more important. Because of changes to child and working tax credit, the average household in receipt of these benefits - including lone parents - will be £700 a year worse off.

"These families will see their annual income reduced by 8%, just when they need support.

"This is just further evidence of the need for independence. We want a welfare system in Scotland that provides fair and decent support for all and protects the vulnerable. And the only way to guarantee that is to have possession of the powers to deliver it."

OPFS, which provides advice and support to lone parents and will benefit from the investment, said Scottish Government funding had allowed it to help nearly 300 families in the past nine months.

Director Satwat Rehman said: "Cuts to benefits, including sanctions implemented by JCP (Jobcentre Plus), have hit single parents hard, as living costs have risen steeply.

"We know many single parents do want to return to employment but they cannot always get the flexible childcare and family friendly employment they need.

"Single parents tell us they are already cutting back on food for themselves and many are borrowing money from friends and family to make ends meet. They are doing a remarkable job under immense financial pressure."