Income management scheme extended

Some welfare recipients will continue to have their benefits quarantined to food and essentials under an extension of the income management scheme.

The federal government has allocated $146 million in Tuesday's budget to extend the scheme for another two years until June 30, 2017.

The scheme limits welfare spending to priority needs such as rent, food, bills and education and prohibits spending on alcohol, cigarettes or gambling.

People living in areas of disadvantage are participating in trials across the country, including the Northern Territory, western Sydney, Perth, and Cape York in Queensland, among other regions.