Only a quarter (24%) of people applying for Employment and Support Allowance (ESA) are found sick or disabled enough to be awarded the benefit, according to latest government statistics.
Just 7% of claimants are placed in the support group where they are not required to do any work related activity while claiming.
A further 17% are accepted but put in the work related activity group while more than a third (39%) are found fully fit for work.
The remaining 36% give up their claim before the assessment is complete.
For those who maintain their claim until the work capability assessment (WCA), 10% are allocated into the support group, 27% to the work related activity group, with almost two thirds (63%) found fit for work.
These latest statistics include all new claims made for ESA from its introduction to the end of last November.
ESA was introduced in October 2008 as the replacement for a variety of injury and sickness based state benefits including incapacity benefit and income support.
However, as COVER has previously reported, it has received much criticism for the severity and insensitivity of the work capability assessment which is used to assess claimants' fitness for work and benefit application.
As a result Professor Malcolm Harrington conducted an independent review of the process which he found was ‘impersonal' and ‘mechanistic' and recommended a series of changes which are currently being introduced.
The state welfare bill is being targeted as a key area for cuts by the coalition and it is estimated by disability campaigners that disabled people will contribute more to reducing the national deficit than the banks.
As part of the welfare overhaul a work programme has been introduced to encourage and support people back into work while a universal single credit benefit payment is being designed.
Steve Webb MP, Pensions Minister at the Department for Work and Pensions, said: "These figures show that many people are able to work with the right help.
"We have strengthened the support now available tailoring it to individual needs so they can overcome whatever barriers they face. Those who cannot work will always receive our unconditional support but for those who can work it's right that they get the help they need to get into employment.
"We are continuously improving the medical test to ensure that it is as fair and effective as possible."