STRUGGLING welfare-dependent households in Adelaide's north will be banned from spending their benefits on alcohol, cigarettes and gambling.

As many as 1000 households will be signed up to the income management pilot program, which aims to ensure children are cared for - and benefits are not diverted to non-essentials, including pornography and home brew kits.

A trial of the Federal Government scheme, similar to a program first introduced in Aboriginal communities in the Northern Territory, will start in Playford on Sunday, as well as four other locations across the nation.

Child protection and social workers will refer struggling families to the program, and households can also volunteer and receive free financial counselling.

Under the program, households will be given BasicsCards, which can be used through EFTPOS machines at 75 shops across the area, and 454 businesses across the state.

Up to 20 service providers, including utilities, public housing, schools and other organisations, are set up to receive direct, income-managed payments.

Welfare agency Anglicare will provide money management and financial counselling services through the SA trial.

Families Minister Jenny Macklin said the program was aimed at welfare payments being spent on children's needs. "It ensures that money is available for life's essentials and provides a tool to stabilise people's circumstances and ease immediate financial stress," Ms Macklin said.

Child protection authorities will refer people to the program where they fear children are neglected or at risk.

Local MP Nick Champion, who volunteered Playford as a trial site, said it had been chosen "based on a number of factors, including unemployment, skills gaps, the number of people relying on welfare payments as their primary source of income and the length of time recipients have been receiving income support payments".

Almost 3450 unemployed people in the region have been out of work for three years or longer.

More information on income management is available at www.humanservices.gov.au or on the Income Management line on 13 25 94.