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Penny, 38, will claim benefits to support herself and her four children including Chantelle. The family may claim benefits on the basis that Penny's unemployed partner Steve is a live-in member of the household.
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But state benefits to support her and her baby will be paid to her mother Penny until then.
At a minimum, the family can expect to receive around £30,000 a year - close to £600 a week.
His father Dennis, 45, himself a father of nine who is separated from his wife, said he was 'gobsmacked' when he discovered the schoolboy was to become a father. 'He said it was the first time he'd had sex, that he didn't know what he was doing and of the complications that could come.
'I will talk to him again and it will be the birds and the bees talk.
Chantelle said she discovered she was pregnant after going to her GP with 'really bad' stomach pains. 'But we are a family and will pull together and get through. I love her and she will want for nothing.' Alfie lives nearby with his mother Nicola, 43, at her £250,000 home but spends much of the time at the Stedman house, often staying the night.
It has got to be sorted out.' According to the teenage parents, their baby daughter - born weighing 7lb 3oz - was conceived after a single night of unprotected sex. 'We didn't think we would need help from our parents.
'I was on the Pill but missed one,' Chantelle told The Sun. You don't really think about that when you find out you are pregnant. 'I have started a church course and I am going to do work experience helping other young mums.' Mother and child are living with Chantelle's mother Penny, 38, her out-of-work father Steve, 43, and their family in a council house in Eastbourne, East Sussex. Mrs Stedman said: 'I told her it was lovely to have the baby but I wish it was in different circumstances.
Sean Thomas, who lives opposite the Stedmans, claimed Chantelle had already had several boyfriends, who were allowed to stay over in her bedroom. They are allowed to sleep over at her house, her parents don't mind.
She is treated like an adult and can do what she wants.' Another neighbour, who did not wish to be named, said: 'The Stedmans let the kids run wild on the street until all hours, they have no control over them.' A 17-year-old called Jake said: 'She knows lots of boys and never has the same boyfriend for long.