TEENAGE mums' welfare payments will be suspended six months after the birth if they do not follow Centrelink orders under Julia Gillard's "tough love" Budget.
Once their child reaches 12 months, teenage parents must attend school to finish year 12. If they skip class, they will lose their parenting payment of up to $625.90 a fortnight.
The Prime Minister will announce 10 pilot schemes to start on January 1.
Treasurer Wayne Swan today defended the move and said it was about giving teen parents opportunities, not punishment.
Mr Swan said people who had been out of the workforce needed opportunities and had an obligation to work.
Ms Gillard is concerned that teenage parents, who typically have poor education and drop out of school, spend their whole life on welfare and, in many cases, their children follow the same path.
About 11,000 teenagers receive the parenting payment and Centrelink figures show 80 per cent do not have a year 12 or equivalent education and just 8 per cent have a job.
Parents are not required to look for work until their youngest child turns six, but Ms Gillard believes by then they have been out of the workforce too long.
Ms Gillard's solution will be to force teenage parents to attend compulsory interviews and support meetings with Centrelink once their baby reaches six months.
After the child's first birthday, parents must have a "participation plan" that includes making sure they finish school or have certificate level qualifications. Teenage parents who fail to comply without good reason will be cut off welfare.
The scheme will also provide help for the child to make sure they are ready for school by paying the "gap fee" for them to attend child care and preschool.
Mum-to-be Amanda Brown, 17, is due on July 28, but says it will not halt her long-term career ambitions.
She quit school after year 10 to study hairdressing from home and is about to start an online course in child care.
She said the Government's plan could help people "get somewhere in life". "I never expected to fall pregnant, but it's no excuse not to start working again when your child is old enough," she said.
Her father Peter said the crackdown sounded sensible. "This baby deserves the best chance in life and so does Amanda," he said.
"With a regular income, you can support a child and give them everything they need ... I don't care what people say, you can't do that on welfare."
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