NICOLA Sturgeon has announced a new fund of almost £33million to help people who face unexpected hard times.

The Scottish Welfare Fund will replace the old Social Fund, and the Deputy First Minister announced the Scottish Government would add £9m to £23.9m being transferred from the UK Department of Work and Pensions.

Ms Sturgeon revealed the new fund in her closing speech at the SNP Annual Conference in Perth.

Responsibility for the Social Fund, which includes Community Care Grants and Crisis Grants, moves from Westminster to Holyrood next year and Ms Sturgeon said it will be replaced and have the budget increased to help the most vulnerable in society.

The grants are available to people who are in a crisis situation, including women fleeing domestic violence attempting to set up a new home with no cash, or for people who find themselves suddenly out of work with no income.

Ms Sturgeon said: "I welcome the transfer of responsibility, but the amount of money being transferred with it, £24m, is less than what was spent on the social fund in 2005.

"We will reverse the cuts that have been made to the fund by both Labour and Tory Governments. We will increase it by £9m and provide essential crisis support in these difficult times for 100,000 more of our most vulnerable people.

"Our Scottish Government will not desert any of Scotland's people in times of need."

The Welfare Fund will also remove part of the fund that was given in loans and only provide grants, a move welcomed by children's charities.

Anne Houston, chief executive of Children 1st, said: "We are pleased that the Scottish Government has increased the amount of money now going into the fund and that they are removing the loan element.

"It means that families are not forced into further poverty as they try to pay back crisis loans."

The Deputy First Minister and Glasgow South Side MSP attacked Chancellor George Osborne and urged him to provide a boost for the ailing construction industry.

She revealed a £45m fund for housebuilding for councils, housing associations and the private sector.

The conference was told it would help build 1200 new homes and give protection to around 800 jobs.

She said: " If the Chancellor cares about getting growth back in our economy, if he cares about getting people into work and giving young people hope of a brighter future, then listen, not to us, but to the growing band of economists and business organisations who say it is time to take a different course.

"Use the Autumn Budget statement to increase capital spending and accept, once and for all, that we will not cut our way out of recession. We must build our way out of recession."