The Nationals' Federal Council will hold its annual meeting on the weekend to consider a number of policy positions. While the 21-member federal party room has stopped short of calling for an increase to Newstart, it is sponsoring two significant motions on welfare reform for the party's broader approval.

One motion asks The Nationals' governing body to call on the Morrison government to expand the cashless debit card nationally for under 35s who receive the dole and parenting payments "to reduce social harm caused by welfare-fuelled alcohol and drug abuse".

The second motion calls on it to support an inquiry into the welfare system "to determine whether it is adequate to support disadvantaged Australians and meet their basic needs and social responsibilities".

While some Nationals MPs, such as former leader Barnaby Joyce, are in favour of an increase to Newstart, party sources who declined to be named said the party room did not have a unified position regarding the dole. They said there was also a view that a straightforward increase to the payment was not the answer, and that if it were increased, it should be combined with some sort of check, like the cashless welfare card.

In response to calls to raise Newstart, Nationals leader Michael McCormack has previously said unemployed people should move to areas where there were more jobs. But he is in favour of the cashless welfare card policy, telling The Sydney Morning Herald and The Age "the results speak for themselves".

The Deputy Prime Minister pointed to a trial of the card in the Queensland electorate of Hinkler - held by Nationals MP Keith Pitt - which began earlier this year, noting a recent drop in youth unemployment in the area.

Mr Pitt said while it was "still very early days", local services had reported more people were paying their rent. "Kids are being fed and looked after," he said.

Nationals MP Pat Conaghan holds the northern NSW seat of Cowper, which contains some of the highest levels of youth unemployment in the country. Mr Conaghan said he would welcome the card in his electorate as it could break cycles of welfare dependence although "it's not going to make some people happy".

Last week, Prime Minister Scott Morrison sent a strong signal his government was eyeing a national rollout of the cashless welfare card, noting he was particularly keen on its application to young people. But Mr Morrison also stressed he was prepared to be patient to make sure communities embraced the program before it was expanded nationwide.

The cashless welfare card quarantines 80 per cent of people's payments on a cashless card, with the aim of reducing spending on alcohol, drugs and gambling.

There are currently trials under way in the East Kimberley and Goldfields regions in Western Australia, Ceduna in South Australia, and Queensland's Bundaberg and Hervey Bay region. Legislation was introduced to Parliament this week to extend existing trials by a year and broaden its use to the Cape York area and Northern Territory.

The card's supporters say it reduces substance abuse and violence and helps people into work but welfare advocates have disputed the effects of the program. Labor does not support a national rollout, while the Greens oppose the card entirely. The Australian National Audit Office has criticised a previous evaluation of the scheme for a "lack of robustness in data collection".

The government is holding a firm line against growing parliamentary and community calls for an increase to Newstart, arguing it is focused on helping people get jobs. Mr Morrison also told the ABC's 7.30 on Monday one of his budget priorities was supporting in-home aged care places, rather than "ramping up the welfare budget".

Newstart has not been increased in real terms since 1994. It currently pays $555.70 a fortnight for a single person with no children. Along with the Greens, Labor and the welfare lobby, the Business Council of Australia and KPMG have also called for an increase.