The announcement follows statistics published by Policy Exchange last week revealing almost six million people in Britain are claiming out of work benefits,
According to the Tories, four out of five of these people were already on benefits before the recession began.
In a speech tomorrow, shadow secretary of state for work and pensions Theresa May (pictured) will say: "These people have been hidden away by Labour for the past 10 years. They have slowly built a wall between the working and the workless, hoping to keep their failures out of sight. Well, let me spell them out.
"The reality is that under Labour there has been a steady growth in welfare ghettos - unemployment did not disappear during the ‘boom years'. It was merely disguised, renamed and hidden away in ever-growing pockets of poverty."
In response to the Tories' announcement, Jim Knight, minister of state for employment reform, said: "This is two-faced nonsense from the Tory party who deliberately pushed people onto sickness benefit and into long-term worklessness in the 80s and 90s, and are now opposing our investment and reforms that are getting people back into work.
"The facts are that there are 2.5 million more people in work now than in 1997 and before this recession the JSA [jobseekers' allowance] claimant count was at its lowest-ever level. Our reforms have been reversing the damage of the Tory years.
"The Tories did nothing to support people into work back then, and have repeatedly opposed Labour's £5 billion to help people now, when they need it most."