The long-term unemployed will have to earn their benefits by doing full-time unpaid community work from next year.
Chancellor George Osborne is to give details of tough new conditions being attached to unemployment handouts - pledging to end the "something for nothing" culture.
Claimants who go through the coalition's flagship Work Programme but still fail to find a job will be required either to do community work, report to a job centre daily, or undergo intensive treatment to tackle problems such as illiteracy or mental illness.
Those who break the rules of the Help to Work scheme, for example by failing to turn up for duty without a good reason, could lose their benefit for four weeks.
A second offence would see them lose it for three months.
The Chancellor wants the jobless to earn their benefits Mr Osborne will announce the US-style initiative, which is due to come into force in April, in his speech to the Tory conference in Manchester today.
He will promise that the Government will not "abandon" the long-term unemployed.
"For the first time, all long-term unemployed people who are capable of work will be required to do something in return for their benefits to help them find work," he will say.
"They will do useful work to put something back into their community making meals for the elderly, clearing up litter, working for a local charity. Others will be made to attend the job centre every working day.
"And for those with underlying problems, like drug addiction and illiteracy, there will be an intensive regime of help.
"No one will be ignored or left without help. But no one will get something for nothing.
"Help to work - and in return work for the dole. Because a fair welfare system is fair to those who need it and fair to those who pay for it too."
Potentially, around 200,000 long-term Jobseeker's Allowance claimants could be eligible for the new initiative.
But ministers believe that the numbers on it will be significantly lower, as many of those working covertly will decide it is no longer worth trying to claim benefits and drop out.
The scheme, devised by Work and Pensions Secretary Iain Duncan Smith, will cost around £300m to implement - with the money likely to be found from departmental underspends.
Sky's chief political correspondent Jon Craig described the new conditions as "a tough crackdown".
He said: "Mr Osborne will say 'work for the dole' will mean having to undertake community work, for example cleaning up litter and cooking meals for old people - doing work that is beneficial for the local community.
"If they refuse to do that, Mr Osborne will say they will have to turn up at job centres every day, not just once a week at present, to continue claiming benefits."
Labour's shadow chief secretary to the Treasury, Rachel Reeves, said: "It's taken three wasted years of rising long-term unemployment and a failed Work Programme to come up with this new scheme.
"But this policy is not as ambitious as Labour's compulsory jobs guarantee, which would ensure there is a paid job for every young person out of work for over 12 months and every adult unemployed for more than two years."
During his set piece speech later, Mr Osborne is not expected to unveil specific action on living standards, despite pressure to respond to Labour leader Ed Miliband's energy price freeze pledge last week.
Instead, the Chancellor will stress the need to stick with the coalition's economic plans, warning that the UK still has not fully recovered from the credit crunch.
:: The Chancellor's speech to the Conservative Party Conference in Manchester will be broadcast live from 11.30am on Sky News.
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