Hain aims to cut incapacity claims

Work and Pensions Secretary Peter Hain said individuals will in future be assessed on what they can do, rather than what they cannot.

People will no longer score points simply because they cannot walk more than 400 metres. Instead the new test will look at things like a person's ability to use a computer keyboard or a mouse, because the Government believes this type of skill should lead to a job.

There are currently 2.64 million working-age people claiming incapacity benefits, which cost the country nearly £12.5 billion last year.

Mr Hain said people legitimately off work will still receive their benefit, adding: "We are not talking about closing a door - we are saying we will open the door to new skills, support and confidence building.

"We know that many people want to work - work is good for you and your long-term well-being and we don't think it's right that in the past people were effectively written off. We want to work with people to get them back into jobs and help them stay there.

"Currently, there are many people sitting at home in the belief that they are unemployable, with no life choices or long-term prospects because they do not think their illness or medical conditions can be catered for in the workplace. But this is just not the case - many people with such conditions are perfectly able to take up successful careers, if the right support is in place."

The medical test will be introduced in October next year alongside the new Employment and Support Allowance.

Its unveiling came as new figures revealed almost 2,000 people are on benefits because they are classed as too fat to work, at a cost to the taxpayer of £4.4 million every year.

Everyone applying for the new allowance will have to take the test, which will replace the current Personal Capability Assessment, and it is estimated half of those will not pass.