Community groups slam funding cuts

Federal government cuts to community service have been chaotic and deeply damaging, the peak social services body has told a Senate inquiry.

The Australian Council of Social Services on Tuesday told how a new departmental grants process had "thrown up" a whole range of vital community services critical to supporting vulnerable people across the country.

Chief executive Cassandra Goldie said the $1 billion in cuts were a massive and savage blow to the sector.

Vital community services have been completely defunded with no alternatives put up, Dr Goldie said.

Among them is the ACT's only drug and alcohol integrated service, Karralika Programs.

Other organisations have been asked to do the same amount of work with a lot less money than previously given.

Playgroup Australia, which provides services for children, was told it had won a contract by the department when in fact it hadn't.

The group has suffered "enormous harm" as a result of the "horrendous" tender process having lost several good staff members, its chief executive told the inquiry.