The Conservatives are to tighten proposals aimed at getting the young jobless back into work.
'Street-corner culture'
At present, under-24s who have been claiming Jobseekers' Allowance for six months or more must take part in the government's New Deal programme for young people.
This scheme, which involves a personal mentor and work experience, helps young people look and prepare for work.
The Tories said their proposals would stop people from "playing the system", whereby they sign up to a New Deal programme, take a job for a while and then go back on benefits afterwards.
Mr Grayling said: "With this approach, for those who are struggling there will be real help. For those who are not there will be no opt-outs."
The Conservatives would end the "street-corner benefit culture among young people which this government has left to fester for the past 11 years", he added.
A spokesman for Work and Pensions Secretary James Purnell said as most young people find a job within six months, the three-month scheme would be a "waste of public cash".
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