Terminal illness sufferers are among sick and disabled people cut off from benefits for over six months after facing cruel assessments from incompetent privateers, senior MPs have revealed.

A damning new report published today by Parliament's work and pensions select committee shames Atos and Capita for the delays.

It blames basic errors, like appointments being cancelled without notice, for the growing backlog.

Labour MP and committee chair Dame Anne Begg condemned their record as "completely unacceptable."

The crisis comes after the Con-Dem government ditched the Disability Living Allowance for its new Personal Independence Payment (PIP).

Hundreds of thousands of sick and disabled people are having to apply for the new PIP and are subjected to face-to-face "assessments" by Atos and Capita.

But the companies are proving so incompetent that applicants are having to wait six months - and even longer - for assessments to be carried out.

Even terminally-ill people who have no chance of working again are being subjected to delays, according to the report.

Ms Begg said: "Many disabled or sick people face waits of six months or more for a decision on their PIP eligibility.

"Even those with terminal illnesses are having to wait far longer than was anticipated.

"This not only leaves people facing financial difficulties whilst they await a decision, but causes severe stress and uncertainty. It is completely unacceptable."

The report calls for penalty clauses in the company's contracts to be invoked.

It also accuses the Department of Work and Pensions of misusing statistics to smear disabled people - assisting the attacks on claimants in the right-wing Tory media.

Public and Commercial Services union general secretary Mark Serwotka said that amounted to "one of the biggest scandals of recent years and has fuelled the sickening vilification of people who rely on benefits."

He added: "Atos and Capita have proved themselves incapable of providing a proper service that treats sick and disabled people with the respect they deserve, and DWP needs to bring this work back in-house and invest in the resources needed to run it effectively."