The report, by the Scottish Poverty Information Unit (SPIU), says that although more people are now in employment, increased part-time work means poverty remains a significant problem.

The Poverty in Scotland study brings together information from a variety of sources dating back to 1996 which reveals poverty will "cast a shadow" over the next century in Scotland.

The study found 34.5% of Scottish households are poor or in severe risk of poverty.

The SPIU said an estimated 880,000 people, or 44.5% of all adult employees were on low pay in 1997, based on the threshold set by the Scottish Low Pay Unit.

About 465,000 workers in Scotland received less than the minimum wage that year.

It estimated that 851,705 people, or 16.6% of the population, were living on or below the Income Support line in 1997.

There were also 533,000 recipients of Housing Benefit in 1997, although the SPIU said it should be noted that there could be several people in one household.

In 1998, 404,894 people claimed Income Support in Scotland, which is described as the "basic means-tested safety net benefit" for those not registered unemployed and available for work.

Disabled people

Pensioners made up 41% of those people claiming Income Support and the proportion of disabled people claiming the benefit has risen from 7% in 1989 to 22% in 1998.

However, the report's authors said the figures hid the significant problem of poverty among elderly and disabled people, the young and those from ethnic minorities.

The report said the people with the least power were those most likely to be affected by poverty.

SPIU spokesperson, Gill Scott, said: "Poverty in Scotland casts a shadow over the new century.

'Biggest issue'

"It is the single biggest issue for the Scottish Parliament to address."

"While the impact of poverty is wide ranging it is also widely ignored. But the evidence is clear - the people who have the least power are the most likely to suffer poverty.

"Women, elderly people, people from ethnic minorities, disabled people and young people all experience higher rates of poverty."