Work and Pensions Secretary Peter Hain said the changes to be introduced next year would end 'sick note Britain' and cut the number of annual claimants by 20,000.
Currently the Government estimates that 2.6 million people claim incapacity benefits, at a cost of £12.5 billion to the public purse.
The new work capability assessment, is being introduced alongside the employment support allowance, which will replace incapacity benefits for new claimant from next autumn.
The reasons people claim incapacity benefit vary widely from disability to depression but new figures reveal that some 250,000 claim £60m for stress related illness while a further 2,000 who are too obese to work claim £4.4m.
Tests such as being able to walk more than 400 metres or being able to climb 12 steps without the aid of a banister would be abolished. The new test will look at other skills such as a person's ability to use a computer keyboard or a mouse, a skill needed in most modern workplaces.
Further assessments will be people's manual dexterity, speech, vision and hearing, as well as their ability to cop under pressure and interact with other people.
Mr Hain said: "We want to help people, not punish people. This is about giving people opportunities because you are better off in work- the evidence shows that."
One Northamptonshire organisation that is trying to help people get back to work is the Jump Start programme run by Wilson Gourlay Associates.
The project is funded through the European Social Fund and the Learning and Skills Council to help people back to work.
The scheme links up all the different agencies and voluntary organisations in Northamptonshire that can help people receive training, education and ultimately employment.
Director Gill Gourlay explained: "We help people out of work and put them through training into employment. We started with 16 to 19-year-olds and worked with organisations like Connexions and the Prince's Trust. The second phase was working with adults with low skills who have missed out on education.
"We are now on the third phase which is aimed at people on incapacity benefit and those with learning difficulties or physical difficulties and mental health issues."
Jump Start is currently touring across the county with a free roadshow to provide information to people and their carers. At these events there are dozens of exhibitors including Welfare Rights, Job Centre, colleges, MIND, Northamptonshire Autism Society and volunteering groups, who highlight all the opportunities available.
The next event will be held at Tythe Barn in Wellingborough on Tuesday December 4, following successful events in Northampton and Daventry.
Ms Gourlay explained why these event played an important role in getting people back to work.
She said: "A lot of people have been on incapacity benefit for a long time.
"The jobs they want to go into are low skilled and that had financial implications for them.
"They can't go back to what they did before as it may be part of their reason why they came out of work and they need to retrain and have modern skills like IT.
"A lot of people are lacking in confidence. They have been at home for some time, out of the work place so have low confidence and self esteem and it is difficult for them to break through."
At the Jump Start events the options are explained to visitors and their contact details taken so they can be contacted to take up further help and sign up for training.
Ms Gourlay added: "We try to offer as many different types of training as possible. There is something for everybody I can say confidently. A lot of people are leaving with a plan of action and understand where they can go next."
But she admitted that sometimes it was an uphill battle and people were not motivated to go back to work.
"There are some people who don't want to change their situation. But there are a lot of people out there who are frustrated with their situation but they put things off and say they will deal with it next week. It is a lack of confidence. Our events are open and there is no obligation and no one watching you."
More roadshows will be hosted at county venues in January and February next year.
To find out more visit www.jumpstart-now.co.uk or call Northampton 811885.