The ParentsNext welfare scheme is set to be abolished by the federal government following a series of parliamentary inquiries. 

The mutual obligations element of the program has been found to be “akin to coercive control”, leading to fears among participants that their financial supports would be taken away. 

The program applies to around 98,700 Parenting Payment recipients, of which 96 per cent are women. 

Finance Minister Katy Gallagher said that work would begin on a replacement program that removes punitive mutual obligations. 

The program's abolition follows the latest parliamentary review, which recommended it be scrapped and replaced with a new pre-vocational service that incorporates positive elements of the scheme while removing problematic mutual obligations. 

The replacement program is expected to begin when existing contracts end on July 1, 2024.