A ROW between Labour and the SNP over the Smith Commission proposals on devolution escalated yesterday as it emerged that welfare measures had been dropped from the final agreement.

According to BBC reports, a late draft of the commission's recommendations included devolving the power to vary universal credit - but the proposal did not make it into the final version.

Other benefits, including disability living allowance (DLA) and the personal independence payment (PIP) that replaces it, attendance allowance and carer's allowance, are to be devolved under the Smith plan.

Labour leader Ed Miliband told party activists in Glasgow the Smith proposals were "signed, sealed and delivered" and pledged to put these into law in his first programme of government if he becomes prime minister next May.

Mr Miliband said the package was a "radical transfer of powers that puts the Scottish parliament as one of the most powerful parliaments of its kind in the world."

But MSP Linda Fabiani, who represented the SNP on the Smith Commission and agreed the final draft, said the plans for welfare were "a missed opportunity."

She said: "Civic Scotland's disappointment with the Smith Commission proposals is clear - with many organisations feeling an opportunity to tackle poverty and inequality has been missed."

Ms Fabiani said that 65 organisations had called for welfare devolution, some called for devolution of the minimum wage and many wanted powers over equality legislation.

"None of these powers have been forthcoming," she said.

"With 70 per cent of our taxes and 85 per cent of welfare staying at Westminster, the Scottish Parliament's hands will continue to be tied as consecutive Westminster governments make the wrong choices for Scotland."

Mr Miliband said the Smith proposals were about "bringing power closer to people while maintaining the benefits of the UK."

He said: "We will all continue to pay national insurance together, so we can have a decent state pension across the United Kingdom.

"We will continue together to support working people and families with tax credits so that we can make work pay across the United Kingdom.

"We will continue to tackle child poverty, with child benefit across the United Kingdom.

"The Smith Commission represents a way forward for stronger powers for the Scottish Parliament."