Grainia Long, policy manager at homelessness charity Shelter Scotland, said local authorities were being forced to accommodate homeless families with children in bed and breakfasts because of a lack of suitable alternatives.
She was speaking after new figures from the Executive showed that 234 children were living in bed and breakfasts in Scotland at 31 March 2004, up more than a quarter in a year.
Long also said new regulations were needed to end the use of B&Bs as temporary accommodation for homeless children.
She said: "(Communities minister) Margaret Curran made a very public commitment last Christmas that it would be the last Christmas that children would spend in B&Bs.
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