United's Championship survival hopes took a big blow at Queens Park Rangers, as they were defeated 3-1.
They were the better team in the first half and were rewarded with Grant McCann's early free-kick, which was his first-ever strike for the club.
However, the hosts were handed a chance to get back into the game just before the half-time interval when Izzy Iriekpen was harshly judged to have fouled Rowan Vine in the penalty area.
Martin Rowlands promptly dispatched the spot-kick, and the hosts won it with twelve minutes remaining as Patrick Agyemang slammed home the winner.
The North Lincolnshire side pressed late on, but Vine capitalised on a defensive mix-up to calmly clip the ball past Joe Murphy, and finish the match off.
Scunthorpe are now six points adrift of safety with eight matches remaining after Leicester were victorious at West Bromwich Albion.
The Iron entered the game making two changes from the side which defeated Plymouth Argyle 1-0 in midweek.
Martin Paterson (hamstring) and Ian Morris (illness) both missed out, so Paul Hayes and Matt Sparrow came into the team as manager Nigel Adkins opted to line up with a 4-5-1 formation.
The fixture started in a frenetic manner with both teams battling for supremacy in the middle of the park during the opening five minutes. Both sides had threatened on the break, with the hosts registering a couple of tame efforts on target.
Scunthorpe had to wait until the seventh minute for their first chance, and they made sure they took it. Geoff Horsfield was fouled by Fitz Hall on the edge of the penalty area and, as a result, United won a free-kick.
Jim Goodwin and McCann sized up the opportunity, and from 25 yards the former Barnsley man curled in a sublime left-footed effort which left Hoops stopper Lee Camp helpless. The ball nestled into his bottom left-hand corner and the Iron contingent behind the goal erupted. It was his first goal in a United shirt.
Two minutes later, QPR thought they had levelled, but Agyemang was ruled to be in an offside position when he slotted home a loose ball after Murphy failed to hold on to a Rowlands shot.
United's change in tactics seemed to work in the opening stages. They were having the best of the attacking possession and Horsfield was proving a more than useful foil for onrushing pace of Sparrow, Hayes and Cork. The on-loan Sheffield United man also won a number of free-kicks.
The target man headed over the crossbar from a McCann corner on 18 minutes and then the latter came close again with a free-kick three minutes later. This time it was from 30 yards but it forced a spectacular save from Camp low to his left.
Iron keeper Murphy was forced into action on 24 minutes when Patrick Agyemang's shot from point-blank range was tipped out low to his left. It was a superb save from the Republic of Ireland international.
It was an all-action affair, and McCann had another opportunity on 26 minutes, but his volleyed effort from the left-hand side of the penalty area, after Hayes' cross, cleared the crossbar.
Then, at the other end, former Hull man Damien Delaney came close on the break with a low effort struck across goal from the left-hand side of the penalty area, which Murphy seemed to have covered as it went wide of goal.
On 33 minutes, Goodwin had Scunthorpe's next chance with a blockbuster of an effort from the edge of the 18-yard box after the ball had only been partially cleared. His stinging volley just cleared Camp's top left-hand corner.
McCann, thriving in the space afforded to him, then curled another effort just over the crossbar from the left-hand side of the penalty area as the visitors continued attempting to extend their lead.
Despite the Iron's attacking intent, the home team were to level on 43 minutes - after referee Mick Thorpe pointed to the penalty spot following Iriekpen's' foul' on Vine. It was a contentious decision, which brought furious protests from Scunthorpe.
Andy Crosby and Murphy were both booked as a result, and Rowlands calmly stepped up to send the United goalkeeper the wrong way with a side-footed effort. It proved to be the last action of an entertaining opening half.
The away side had their first chance of the second period on 47 minutes when Goodwin took a short free-kick, which allowed Horsfield the space to drive in a low angled shot from the left, which Camp was equal to.
The second half was not being played in the same vein as the first, with both teams struggling to get the ball down. In truth, it was still frantic, hurried stuff, but few chances were being created by either side.
QPR had the best opening of the second period so far when Agyemang bustled through on the right to volley in a low effort which hit Murphy's right sidenetting.
And it was the former Preston frontman who was to dash the Iron's hopes with a 78th-minute strike. The marksman played a neat one-two with Buzsaky before thrashing the ball past Murphy from ten yards.
Scunthorpe made their first changes of the afternoon in the final ten minutes, with Ben May replacing McCann, and Kevan Hurst coming on for Hayes. They failed to have the desired effect though.
They had a decent opportunity before full-time - with Sparrow's shot, after a goalmouth scramble, getting blocked on the goal-line and cleared away to safety.
They pressured QPR late on, but there were no more chances, and United were left to rue what might have been once more.
And just as referee Mick Thorpe was about to blow for full-time, the home side made it three when Vine capitalised on a defensive mishap to find himself one-on-one with Murphy, and he clipped the ball home.
Eight matches remain, with the Iron visiting Wolverhampton Wanderers on Tuesday night.


















