The Prime Minister says he's open to shortening jail sentences for prisoners who pass literacy programmes.
The Act Party launched that policy at its conference two weeks ago.
Bill English has said in the past that it is a moral failure to have increasing numbers of people in prison.
Speaking to TVNZ today, Mr English has said the Act policy is worth looking at.
"I like the idea that it's related to change in the behaviour of the prisoner.
"We have focused a lot of money and time on trying to break the cycles of re-offending and we've had some success there, but not near enough yet."
There would still be some prisoners who committed serious crimes and were locked up for a long time, Mr English said.
Act leader David Seymour said he welcomed the Prime Minister's endorsement of the policy.
He said last month the policy would be a bottom-line in any coalition deal.
No support for abortion law change
Mr English also told TVNZ he would not vote to change the abortion laws.
The Abortion Law Reform Association has called for the current laws, which require two doctors to certify that continuning the pregnancy would seriously harm the health of the mother, to be modernised.
The group wants to make it easier for women to get an abortion.
But Mr English said the current law had stood the test of time.
However, he would be just one vote of 121 if the issue came before Parliament, he said.