The investment, from the Tackling Child Poverty Fund, was announced by social justice secretary Shirley-Anne Somerville during a Scottish Parliament debate on supporting households with cost-of-living pressures and rising energy bills.

It will allow the Wise Group to continue with work which has so far helped 3,200 households, enabling people to find work, increase their skills and improve their financial situation.

The wrap-around nature of the support means mentors from the Wise Group are also able to support people to improve their mental health and wellbeing.

Ms Somerville said: “We know people continue to face pressures with the cost of living and the recent announcement that energy bills are set to rise again this month will only add to those pressures.

“The Wise Group work we are funding, offers support not just with an immediate crisis, but aims to help people make long-term improvements to their financial stability, helping them to access help with issues such as childcare, training and finding sustainable work.

“Eradicating child poverty is the Scottish Government’s overriding mission. This year’s budget commits more than £3 billion to a range of actions to tackle poverty and the cost of living. However, our efforts are undermined by the social security policies of the UK Government, not least the two-child cap which prevents parents from claiming universal credit for more than two children.

“That is why we will develop the systems necessary to effectively scrap the impact of the two-child cap in 2026. The Child Poverty Action Group estimates that scrapping the cap in Scotland could lift 15,000 children out of poverty.”

The funding of £2.185m will enable the Wise Group to continue its work in six local authority areas for 2025-26: Glasgow, Inverclyde, North Lanarkshire, South Lanarkshire, Renfrewshire and Scottish Borders.

Sean Duffy, Wise Group chief executive, said: “This investment is a vital opportunity to rethink how we deliver services, strengthen local partnerships, and take a preventative, ‘invest to save’ approach that drives lasting change in tackling poverty.”