A company that tests the sick and disabled for benefits told dozens of people they were fit for work – shortly before they died.

Over the last three years 32 people have passed away while challenging decisions to take away their entitlements.

Doctors paid by private health services firm Atos to make assessments are given a quota.

They should rate only one in eight as so ­disabled that they will never work.

Labour’s shadow energy minister Tom Greatrex said: “How can Atos get things so wrong that 32 people they believe are fit for work die within weeks of their ­capability assessment?

“It is hard enough for anybody going through the tortuous appeals process when they have been wrongly assessed as fit for work.

"That dozens have had to do so in their final days is outrageous.”

A review by health specialist Prof Malcolm Harrington CBE suggested changes to make the “fit for work” testing process more “fair and humane”.

But his recommendations, which would mean more people staying on benefits, were not taken up and he was asked to step down as a government adviser.

Ministers said a “fresh pair of eyes” were needed to look at the scheme.

Lib Dems are shaping up for a rebellion over Tory plans to cut another £10billion from the benefits bill.