NEW parents living in poverty will get extra cash to help with the costs of having a baby under new plans by Scottish Labour.

Scottish Labour leader Kezia Dugdale has set out four new policies on welfare ahead of the election campaign.

Following her plan to increase Scottish income tax by 1% to prevent cuts and spend more on public services Ms Dugdale set out areas where extra cash raised would be invested following what she called the first "tax and spend Scottish election".

In a speech in Glasgow she revealed plans for more cash for care leavers going into higher education, full abolition of the bedroom tax, an increase in carers allowance and more than doubling of the Sure Start Maternity Grant.

She said almost a quarter of a million children in Scotland are hit by poverty, undermining their health and educational opportunities.

She said: "That is not something I can stand by and let happen.

"By giving real help to families who need it most at the beginning of a child's life we can work towards making sure every child gets the start in life they deserve."

She said Labour would increase the grant from £500 to £1030.

Ms Dugdale said the grant hadn't increased in the 14 years since it had been introduced.

She said Carers allowance would be raise to the level of JobSeekers Allowance worth around £600 a year.

The plans also included a full grant for young people leaving care.

Ms Dugdale also said the new powers over Universal Credit would be used to abolish the bedroom tax.

The policies were welcomed by anti-poverty campaigners who argue the new powers available to the Scottish Parliament must be used to tackle poverty

Peter Kelly, director of the Poverty Alliance, said “With new powers on the way, now is the time to think about the type of Scotland we want to live in, and how we achieve this.

“The Poverty Alliance welcomes the debate on these important issues and we look forward to all the parties setting out their contributions in the coming weeks.

“We believe that poverty is not inevitable, it is the result of political choices.

“Today’s announcements from Scottish Labour are welcome but there is much more to be done if we are to end poverty once and for all.”

The Tories in Scotland however warned against raising taxes to pay for enhanced welfare or to protect public services.

Ruth Davidson, Scottish Conservative leader, backed the plan to increase carers allowance

She said: "The devolution of welfare, which we supported last year, means that the Scottish Government can now make real choices about the level of benefits here.

"However, all political parties need to be sure there is a fair balance between helping people who need our support, as well as the taxpayers who fund it."