People on the unemployment benefit for more than a year could have their payments cancelled if they refuse to front up to Work & Income and make a plan to return to work.
Social Development Minister Paula Bennett says the Cabinet will consider moves to strengthen work test requirements in the New Year.
She says the unemployment benefit is meant to be a temporary support for people who are able to work, but can't find a job.
Ms Bennett says the bulk of people on benefits are receiving them because of necessity, but there are some who see them as a way of life.
Currently about 10% people on the unemployment benefit have been receiving it for more than a year.
Ms Bennett says in future there will be a comprehensive work test requirement for people who have been on the unemployment benefit long term.
Wrong to threaten people at Christmas - Greens
Greens' welfare spokesperson Catherine Delahunty says the Government's approach is wrong, particularly at a time when unemployment is high.
"This is not useful, to start threatening people," she says.
"We need to create work, we need to look at things like the Green new deal and see where we can find sustainable jobs for people, rather than - particularly at Christmas - sending out signals that we're the kind of society that's going to throw people off their only means of support."
Other moves being considered by the Government include the introduction of a staged work test requirement for those on the Domestic Purposes Benefit once their youngest child turns six.
