The Federal Government will lift the temporary pause placed on the cashless welfare card trial due to COVID-19.

Under the program, 80 per cent of an individual's welfare payments are allocated on the card, which cannot be used to purchase alcohol or gambling products.

Social Service Minister Anne Ruston says nearly four thousand people will be involuntarily added onto the card trial in the coming weeks.

The decision comes just weeks after the release of a University of Adelaide report which found the card contributes to feelings of stigma, shame and embarrassment, but has contributed to some reductions in alcohol use and gambling.