Unemployed people should do a 9 to 5 day looking for work or undertake community service style duties such as digging gardens under moves to tackle the hardcore of joblessness, the author of a Government-commissioned report said.
Professor Paul Gregg said there should be a completely new approach towards people such as parents of young children and those on incapacity benefit.
Virtually everyone on benefits should be required to take steps towards finding a job and should face having their benefits stopped for up to four weeks if they repeatedly refuse to co-operate with attempts to find them work, it was suggested.
Work and Pensions Secretary James Purnell said he "strongly welcomed" the report, adding: "The direction of travel is the right way."
A welfare reform bill will be included in the Queen's Speech on Wednesday, and the report is part of the Government's drive to get more people into work and cut down the numbers on benefit.
Mr Purnell said: "The approach that virtually everyone should be doing something in return for benefits is the right one.
Professor Gregg, of Bristol University, recommended that sanctions should be quicker, clear and more effective, with a simple system of fixed penalties and an escalating series of sanctions for repeat offenders.
Prof Gregg said it was important not to let people drift away from the labour market, especially as a result of the current economic downturn.
The report recommends a swift escalation of sanctions for jobseekers who fail to turn up to meetings and interviews.
After a written warning for a first transgression, they would thereafter lose a week's Jobseeker's Allowance (JSA) each time they did not comply with conditions. After a fourth offence, they would be required to undertake community service. If they refused, they would lose four weeks' JSA.
-Nova