The cashless debit card scheme is government-sanctioned financial abuse, a single mother placed on the income management program says.

Social exclusion, stigma and a lack of financial flexibility associated with the card had devastating mental health impacts for Kerryn Griffis and her daughters.

Ms Griffis told a parliamentary committee life became more difficult when she was placed on the card than it was before.

“You hear politicians banging on about how great it is and that ‘it’s a tough but necessary measure’ but it’s all rubbish,” she said on Tuesday.

“They’re either wilfully ignorant or they just don’t care about the real-life impact this card is having on people.

“As a domestic violence survivor, I can tell you right now that the … program is, simply put, government-sanctioned financial abuse.”

The committee is examining a proposal by the Albanese government to abolish the cashless debit card which would shift more than 17,000 welfare recipients away from the scheme.

The debit cards were introduced by the Liberal-National coalition in 2016 and introduced in several communities, including Ceduna in South Australia and Cape York in far north Queensland.

Under the scheme, up to 80 per cent of welfare payments can be placed on the cards and funds cannot be withdrawn for cash or spent on gambling or alcohol.

Single mother of five Bianca Chatfield told the committee she needed permission to buy a particular bra when using the card.

Ms Chatfield was asked to send a photo and details of the prospective purchase to the social services department which she described as a major invasion of her privacy.

“If I did have a partner … and I had to ask permission to buy anything like that, such personal items, it would be considered domestic violence,” she told the committee.

“It is not OK (and) I don’t see how the government thinks that that’s acceptable.”

But a former Ceduna mayor said the government will regret the “foolish abandonment” of the card.

Allan Suter was involved in the implementation of the cashless debit card trial in the South Australian town and said it resulted in massive improvements in his community.

The card addressed gambling and alcohol abuse problems and improved the lives of many women and children, Mr Suter said in a submission to the committee.

“Our local community … are disappointed and horrified in some cases that this most worthwhile initiative is being shut down,” he said.

“The level of support within all members of our community was reflected by the fact that I was known as a strong supporter of the card and was re-elected (to council) with 70 to 80 per cent of the vote.”

Yet Bundaberg Regional Council mayor Jack Dempsey told the committee the card was divisive and had led to the region being denigrated since a trial was introduced.

“If you want this card, introduce it into your own communities but don’t impose it on our communities,” he said.

– AAP