Under the program, people receiving parenting payments from Centrelink, overwhelmingly single mothers, are required to attend appointments with a provider and participate in activities designed to get them ready for employment.

Instead, women report being forced to attend playgroup and library storytime, sometimes even if their children are in preschool, as well as concerns about privacy and how reports of domestic violence are handled.

A Greens and Labor dominated committee has called for the program not to continue in its current form, but few specific changes were recommended in the majority report.

The committee called for sanctions to be considered against ParentsNext providers who have pressured or coerced parents into signing privacy forms or have suspended payments for those who refused to sign the form.

The report also aired concerns about the human rights implications of the program, due to the way it targets women and children.

"No parent should need to live in fear of being unable to feed their baby because of potential compliance actions against them," the report said.

Labor says the program is "deeply flawed," but instead of dumping it, said major changes would be made and women wouldn't lose payments for missing story time or swimming lessons.

While parents would still be required to participate in the program, but the party wants an "evidence-based case-management approach" for the program to ensure it isn't intrusive or punitive.

Greens Senator Rachel Siewert, who pushed for the inquiry, said the program should be made voluntary and removed from the targeted compliance framework, which allows for automatic payment suspensions if a participant misses an appointment or a required activity.

"One of the key flaws and sources of distress for sole parents is the constant threat that a payment will be suspended or cancelled," Senator Siewert said.

“So long as the targeted compliance framework is in place providers, whether in ParentsNext or jobactive, it will play a punitive rather than a supportive role."

Minister Kelly O'Dwyer has already signalled a crackdown on providers who breach the guidelines for the program.