MPs have criticised the test being used to see whether people claiming disability benefits are fit to work.
The Public Accounts Committee said the Work Capability Assessment had resulted in too many wrong decisions which were overturned on appeal.
Its chair Margaret Hodge accused the Department for Work and Pensions (DWP) of being “unduly complacent” and of hurting the “most vulnerable”.
But employment minister Mark Hoban accused the MPs of “scaremongering”.
The Work Capability Assessment tests was introduced in 2008 to assess entitlement to Employment and Support Allowance, after it was claimed the old system was failing.
The company Atos was paid £112.4m to carry out 738,000 assessments in 2011/12.
The committee found 38% of appeals against the DWP’s decisions had been successful.
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