Kate Forbes’s package of support to help Scots households with the cost of living crisis has “repeated the mistakes” of the UK Government’s approach, anti-poverty charities have warned.

The Joseph Rowntree Foundation (JRF) and the Poverty Alliance said more support should have been targeted towards low-income households.

The Scottish Finance Secretary set out plans for a £150 council tax rebate for most households during a Budget debate at Holyrood on Thursday.

She admitted it is an “imperfect scheme” and does not go far enough to support Scots hit by rising energy bills.

Chris Birt of the JRF said: “By largely copying the approach of the Chancellor, the Scottish Government has repeated his mistakes and provided cold comfort for families on low incomes in Scotland

“While many people currently living in poverty will receive this small payment, many more people who are not in poverty will too, meaning the available funds are spread far too thinly.

“£150 will barely touch the sides of the gaping hole in many low-income households’ budgets, many of whom are already facing hunger, anxiety and debt.

“There was no perfect solution available to the Finance Secretary, but this isn’t a good one.”

He said it is “hard to understand” why a different approach was not taken.

Peter Kelly, director of the Poverty Alliance, said: “People across Scotland are feeling the grip of poverty tighten on their lives, as the cost of living crisis continues to bite.

“So it was deeply disappointing that Kate Forbes’s announcement today mirrored the UK Government’s misguided approach to the cost of living crisis.

“While any additional cash into people’s pockets is welcome, the measures fail to properly target support at people on the lowest incomes.

“This was a missed opportunity to protect people living in poverty from the waves of hardship that threaten to overwhelm them, and a missed opportunity to right the wrong approach taken by the UK Government.”

Meanwhile, Citizens Advice Scotland said it has seen “soaring demand for energy advice”.

Chief executive Derek Mitchell said: “Further support for people struggling is certainly welcome, however the stark reality is that lots of people are still going to be significantly worse off.

“The spring is going to see a cost of living crisis which will squeeze household budgets to breaking point.

“People are already struggling badly, with one in three of us finding bills unaffordable right now, and half a million people in Scotland cutting back on food to deal with bills.”

The Finance Secretary addressed criticism from the charities at a later point in the Holyrood debate on Thursday.

Ms Forbes said she had read proposals from the JRF and other groups.

She told MSPs: “If we had the full levers of a social security system or tax system I think we could do a far more targeted approach.

“But the approach that we’ve taken ensures that families get help quicker rather than later.”