NZ First leader Winston Peters. Photo: RNZ / Samuel Rillstone
New Zealand First has proposed a two-year cap on the length of time a person can receive the Jobseeker benefit over their lifetime.
After that point, beneficiaries will be cut off or required to work in the community for their wage.
In a statement, the party called for a change in the attitude of young people.
"New Zealand is never going to fill employment vacancies, or work our way out of our country's debt unless there is a seismic change in the attitude of particularly young people to engage in work."
The Jobseeker benefit is available for unemployed people looking for work, as well as those with a health condition or disability.
"New Zealand First has always believed that the state should give people a hand-up during times of genuine financial hardship, however, such help should not turn into a long-term hand-out that has the potential to become an intergenerational issue.
"This policy will strike the balance between ensuring struggling kiwis get the financial safety net when they need it, with a set of expectations on contribution to our country working our way to a much better future."
New Zealand First leader Winston Peters said his party had not done an analysis of how many people would be affected by this "common sense" policy.
He said it would bring "fairness back to society".
Peters would not say if two years was too short a time for an individual to find work.
"Our job is to find them a job and get them into work, get them into good habits so when there's an upturn, they'll be trained and ready to go for a better-revived economy."
He said the majority of New Zealanders would think of the policy as "reasonable, logical and fair".
The National Party has also promised to impose tougher sanctions on Jobseeker beneficiaries who don't meet their obligations, including a reduction or suspension of benefits and mandatory community work.