The Conservative leader, speaking during the Conservative conference in Birmingham, said he wants to “abolish” youth unemployment and prevent young people going directly from school to a life on welfare.
Under the plans, young people not in education, employment or training would be able to claim JSA for up to six months while they find work or a training placement.
But if they are unable to find work in that time, the Conservatives want to stop their JSA payments unless they agreed to volunteer for work in the community.
This would entitle them to a "youth allowance" which would be set at the same level as JSA - currently £57.35 a week for 16- to 24-year-olds.
The overall amount that people will be able to claim in benefits in a single year will be reduced by £3,000 from the current level of £26,000.
Savings would be used to fund more apprenticeships.
Cameron said: “Our ambition is to abolish youth unemployment and make it the case that it’s simply not possible anymore to finish school, leave home, sign on and get a flat through housing benefit. That should not be possible.”
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