A US-style "work for the dole" scheme could save £3.5 billion a year in welfare costs and help hundreds of thousands off benefits, a campaign group said.
The TaxPayers' Alliance (TPA) said only the "extreme sanction" of stripping people who refused to do 30 hours' activity a week of all state help would force them to seek "proper jobs".
And it said ministers should seek an opt-out from EU rules if necessary to give welfare reforms the necessary bite, warning the flagship Universal Credit scheme would otherwise have "limited effect".
In a report written by entrepreneur and former Conservative parliamentary candidate Chris Philp, the group which campaigns for lower taxes hit out at the cost of welfare dependency. Two-thirds of the jobs created since 2000 were taken by "immigrants prepared to work hard rather than rely on benefits" while many Britons "evidently weren't interested", it said.
Under the proposed scheme, individuals claiming the new Universal Credit would have their payments automatically suspended if they declined to take part in prescribed activities. For most that would mean 30 hours a week of community service, charity work, approved training, work experience or "meaningful" job hunting with officials. Claimants employed for fewer than 30 hours a week would be expected to make up the difference and the time would be reduced to allow for those with childcare "or similar obligations".

