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A household debt crisis is looming as increasing energy and food bills cause a significant fall in real incomes, a Holyrood report has warned.

The said the cost of living crisis brought severe challenges for people on low incomes across Scotland.

Debt and money advisers were being "stretched to breaking point" by growing demand, the committee reported.

It called for emergency funds to be distributed in a "fair and timely" way.

Elena Whitham, SNP MSP for Carrick, Cumnock and Doon Valley and the convener of the Social Justice and Social Security Committee, said the rising cost of living was pushing more people into debt.

"Our inquiry has exposed the severe challenges faced by households on low incomes across Scotland," she said.

"We have heard startling testimony about how increasing numbers of people, who have even less money due to the rising cost of living, are being pushed into debt.

"The fact is, people are in debt right now and things will only get worse. Urgent action must be taken to help protect people on the lowest incomes, who are already having to make impossible decisions about how ever more limited budgets should be spent."

The committee made recommendations for both the UK and Scottish governments, including using lessons learned in the pandemic and the current economic crisis to develop a method of distributing emergency funding in a "fair and timely manner".

More support targeted at the people most in need, greater financial support for debt advice services, and the development of a debt management strategy covering all Scottish public bodies were also recommended.

The report highlighted a growing pressure being put on debt and money advisers, with many services reportedly being "stretched to breaking point", leading to long waiting times for appointments.

The committee said a number of debt advisers had found themselves experiencing their own concerns over finance, resulting in added stress.

Ms Whitham said they also found that public bodies had a "quicker and harsher approach to debt collection", for example with council tax.

She also thanked those who shared their "revealing" insights.

The MSP added: "We would encourage other public bodies to ensure they consult in this way to ensure they get the wealth of experience that people with lived experience can offer."