Under the devolved Scottish tax and benefits system, the richest tenth of the population are on average 2.1% poorer than those in England and Wales, a hit equivalent to £2,590.

By contrast, the poorest households will be on average £580 better off a year when new 4.5% benefit rise in April is taken into account, according to the Institute for Fiscal Studies (IFS).

In total, the Scottish Funding Council (SFC) estimated that, before accounting for a behavioural response, changes to Scottish income tax policy will raise £1bn in 2023-24.

The IFS said policies introduced over the last few years, such as changes to the benefits system, have increased the incomes of poorer families with children.