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David Cameron has suggested benefits paid to people under the age of 25 could be cut in an effort to reduce long-term worklessness.
In his speech to the Conservative conference, the prime minister promised to "nag and push and guide" young people away from a life on the dole.
It was later confirmed that the government is reviewing policies for 16 to 25-year-olds.
But Labour accused the Conservatives of a "desperate" lack of ideas.
In his speech, Mr Cameron promised to create a "land of opportunity" by boosting business and reducing reliance on benefits.
He also vowed to improve the education system and told party activists that there still much work to do to fix the economic "mess" left by Labour.
The latest figures from the Department of Work and Pensions showed 1.09 million people between the ages of 16 and 24 were not in work, education or training.
Mr Cameron argued that action was needed in the UK, saying: "There are still over a million young people not in education, employment, or training.
"Today it is still possible to leave school, sign on, find a flat, start claiming housing benefit and opt for a life on benefits. It's time for bold action here."
He promised the Conservatives would consider, as they write their manifesto for the 2015 general election, whether "that option should really exist at all".
A Conservative source has told the BBC the manifesto will definitely contain a commitment to end the automatic entitlement to housing benefit for the under-25s, as suggested previously by Mr Cameron.
In his speech, the prime minister criticised reliance on benefits, saying: "Instead we should give young people a clear, positive choice: Go to school. Go to college. Do an apprenticeship. Get a job.
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