THE Scottish Government has “squandered” the Union dividend, meaning “Scottish people pay more and get less,” David Lidington, Theresa May’s de facto deputy, has claimed.

The Cabinet Office Minister made his remarks during Prime Minister’s Questions after clashing with the SNP’s Westminster leader Ian Blackford.

The Highland MP had launched an attack on the UK Government over pensions, complaining how it had "sneaked through a cut in pensions credit which will see some couples up to £7,000 a year worse off".

Mr Blackford went on: "An estimated 300,000 more pensioners are now living in poverty than in 2012. Does the minister agree that his Government needs to change course and instead of robbing pensioners start supporting them?"

But Mr Lidington – standing in for Mrs May, who was in Belfast holding Brexit talks with the local parties - replied: "What this House voted for some years ago is perfectly logical and in line with the intention of the benefit system."

The Nationalist leader insisted the Government was continuing to put its “hands into the pockets of the poorest in our society". Pensioner poverty, he argued, was "not a myth, it is a reality" as he called for pension reform to be taken by the Scottish Government in an independent Scotland.

However, Mr Lidington pointed out – to SNP MPs gesticulating with anger – how it was in the power of the Scottish Government under the devolution legislation to “top up” social security benefit if they chose to do so.

He argued last week’s Scottish Government Budget had "led to Scots being more highly-taxed than people in any other part of the UK".

The Cabinet Office Minister added: "The SNP has squandered that Union dividend. The message we get from them is if you have an SNP government, Scottish people pay more and get less."

Later, after further clashes in Points of Order, Mr Blackford declared: “There is no Union dividend.” He stressed how the Scottish Government had had a £2 billion cut to its Budget over the last nine years.

When it was pointed out how ahead of the Scottish Budget, Edinburgh received a £148 million windfall thanks to consequentials under the Barnett Formula, the SNP leader referred to it as an “equalisation payment,” which was not the same as a Union dividend.

During a session of Holyrood’s Finance Committee, Murdo Fraser, the Conservative MSP, accused Derek Mackay, the Scottish Finance Secretary, of being “essentially dishonest” about his Budget, which was passed after a deal between the SNP Government and the Greens.

The agreement included an allocation of £90m to local government; funded by the additional £148m from Whitehall in Barnett consequentials.

But Mr Mackay insisted he had been transparent throughout the process.