The government faces an uphill battle in winning independent senator Jacqui Lambie’s vote to expand its cashless debit-card program across the Northern Territory.

Labor and Greens senators on a committee reviewing the government’s latest expansion plan of the income management program have rejected the legislation, arguing there was no verifiable, independent evidence the scheme was beneficial and had the potential to push back Closing the Gap targets.

The government is pushing ahead with its plan despite the concerns, although it remains short of the necessary numbers to have the plan pass the Senate.

After visiting most trial sites – most recently Ceduna three times, with visits to the Western Australia sites planned for January – Lambie remains unconvinced the necessary supporting infrastructure has been put in place.

A spokeswoman for the senator said that while she remained “broadly supportive” of the cashless debit-card program, she “is concerned that the promised services, including rehabilitation and vocational training centres, are simply not there”.

Without those services, the spokeswoman said, “she absolutely does not support a nationwide roll out”.

Lambie’s unmoving position shows the government has an uphill battle to rolling out its “compassionate conservatism” program, which also includes drug testing of job-seeking welfare recipients.

Both measures have split the parliament, leaving the crossbench to make the ultimate decision.

Under the cashless debit-card scheme, which came into effect in 2016, up to 80% of income is quarantined in a special bank card that can be used only at certain vendors, and cannot be used to buy alcohol or gamble, although loopholes have allowed this to happen in some cases.

Under new legislation, the minister would, in some cases, be able to restrict 100% of a welfare payment to the card. But critics argue the scheme leaves some participants worse off, as they are unable to buy goods and services outside of prescribed stores, such as second-hand stores or markets that offer goods at cheaper prices than stores approved to take the debit card.

Labor wants the government to make opting into the card voluntary, as well as an independent inquiry established to judge the card’s effectiveness.

The committee’s report recommended the minister “clarify” the discretionary powers to determine rates of quarantined income, and how communities can request changes, but did not recommend the proposal be dropped.

Labor senators on the committee, including Malarndirri McCarthy, rejected the bill on the grounds it was not supported by evidence.

“Twelve years after it was introduced, there is no evidence that broad-based compulsory income management has worked in the Northern Territory to improve outcomes,” the Labor dissenting report said.

“Labor senators are also concerned about the lack of local consultation and the absence of consent for this proposed policy in the Northern Territory.

“Labor Senators do not believe the CDC trials should be extended or expanded unless: the card is made voluntary; it is only applied in specific instances, with intensive case management and is time limited, eg child protection; or a community genuinely gives their informed consent to trial the card, consistent with self-determination.”

Greens senator Rachel Siewart also said there was no justification for a compulsory rollout of the program into any new areas, including the Northern Territory.

“It relies on anecdotal evidence, misleading data and evaluations that are heavily criticised for their lack of rigour to support their claims that cashless debit card is working,” Siewert said.

“We heard some heartbreaking evidence through this inquiry, of the deep poverty that people on compulsory income management in the NT are experiencing, how the underlying causes of disadvantage are not being addressed and the harsh impact income management has had on people in the NT for 12 years.

“It’s one thing to make plans far away in an office in a capital city and another to listen to the lived experiences of people, living on income support, living in poverty and struggling under income quarantining. This card does not assist people with the barriers they face and it makes people’s lives harder.”

A report commissioned by the government in 2018 reported mixed results, with the scheme having been considered effective in reducing alcohol consumption and gambling in Ceduna and East Kimberley.

But less than 20% of participants felt their lives had improved, and almost a quarter of parents believed the card had made their children’s lives worse.