Utility companies are breeding poverty by charging poorer people more for their services, Citizens Advice Scotland (CAS) has found.

More than a quarter (27%) of poor people use pre-payment energy meters, most of them racking up bills of more than £100 a month, compared with 12% of middle earners and 1% of high earners.

Nearly half (47%) use more expensive pay-as-you-go phones compared with 31% of middle earners and 9% of high-income earners.

CAS also found poorer people often take out credit or loans without understanding the full costs involved and so end up repaying much more than they can afford.

Others said they had no home contents insurance as they could not afford it.

"Many charities have published evidence in recent years which shows that too many people in Scotland struggle on low incomes," CAS spokesman Patrick Hogan said.

"Our new research today shows that many individuals' financial situations are made even worse because poverty levels limit their choices when it comes to accessing consumer services.

"So, if you are poor in Scotland today you pay more for basic services and so become even poorer. This cannot be right and needs to be addressed.

"In our report today we make a number of recommendations about how to address this problem.

"We pledge that we will work together with those who supply essential services to persuade them to bring down costs and offer better deals to those on low incomes.

"We will also raise awareness of cost traps and the importance of making informed consumer choice."

Mr Hogan added: "The market must offer better value for consumers of all income levels. Poverty should not breed even more poverty."

The new research comes after campaigners called for the Scottish Government to significantly increase funding for home energy efficiency measures on Tuesday after it admitted its target to end fuel poverty will not be met.

The Existing Homes Alliance urged ministers to set a target for home energy performance and press ahead with regulation of energy efficiency in the private sector.

Housing minister Kevin Stewart confirmed last month the government's target to eradicate fuel poverty by November 2016 would not be met.

There were about 845,000 households in Scotland living in fuel poverty in 2014, defined by households which spend more than 10% of their income on fuel to maintain satisfactory heating.

Alan Ferguson, chairman of the Existing Homes Alliance, said: "It is of course disappointing that Scotland will miss the target to eradicate fuel poverty, which the government has now acknowledged.

"We now strongly encourage ministers to use the remaining three months to develop new plans that redouble efforts to tackle the scourge of fuel poverty."

Mr Stewart said: "We remain committed to eradicating fuel poverty in Scotland.

"That is why we have already designated home energy efficiency as a national infrastructure priority and are making available £103m this year alone.