Prime Minister John Key will deliver new policy tomorrow to address social welfare reform with a focus on young people.

That could include addressing both youth unemployment and training and young women on the DPB but it is not expected to include a return to youth rates.

"What we are currently doing when it comes to the welfare system for young people is not working and that needs to change," Mr Key told 600 delegates to the National Party conference in Wellington.

"I believe that every New Zealander should be entitled to that brighter future no more so than young people.


"But what we know is that when young people go on welfare by definition they stay there for longer. It costs the state more but most importantly, they rob themselves of a tremendous opportunity."

While the overall unemployment rate in New Zealand is 6.5 per cent, the rates for young people ages 15 to 19 is 27.6 per cent.

Of all unemployed, 43.8 per cent are aged under 25.