The review led by minister of state for social security and disability, Stephen Timms, found that while PIP is a lifeline for many claimants, it can create barriers to work, physical activity and community life.

‘This interim report delivers a clear message: while PIP is widely valued as a benefit, it is not working as intended and needs fundamental change,' he said.

Nine in 10 (90%) of respondents and described the process of claiming as at times ‘dehumanising', ‘degrading' and ‘stressful' and the use of supporting evidence too often inconsistent with only 5% of responses about the process were positive.

The review, which is due to conclude later this year, will take account the Milburn Review into the increase in the number of young people who are not in education, employment or training.

Around 10 million working-age people report living with a disability – equivalent to 24% of the working-age population, compared with under 17% in 2013/14.

Findings from over 38,000 responses describe an assessment process that fails to reflect real-life impacts, particularly for those with multiple or fluctuating conditions.

Yet the report also found that disabled people consistently describe PIP as a vital lifeline, allowing independence. Without it, many say they would become housebound, dependent on family, or in need of residential care.

David Finch, interim director of health and inequalities at The Health Foundation, said: 'It will be vital that the review's recommendations due in the autumn reflect changing needs. There have been significant increases in reported mental health and neurodevelopmental conditions, particularly among younger people, that the current system is not well equipped to support.

'Successful reform would ensure PIP is part of a system that better supports disabled people to participate fully in work, society and community life, and provides them with dignity and respect.'