An amendment by the House of Lords to contributory Employment and Support Allowance (cESA) has been overturned by the government.
The revision would have extended the time limit on cESA to two years and given those experiencing mental health problems time to recover before returning to the workplace.
Some 332 MPs voted in favour of keeping the time limit of one year, in addition to capping the amount of benefits a person can receive at £26,000 annually and preventing young disabled people who have never been in employment from claiming cESA.
The government claims that if the Lord's amendments where adopted the state would have to find billions of pounds in the budget to cover the costs.
Paul Farmer, chief executive of Mind, commented: "We are bitterly disappointed that the House of Commons has chosen to implement this arbitrary one year time limit.
"The Government’s own figures clearly show that the vast majority of people on Employment and Support Allowance need the help to remain in place for more than a year."
Some 94 per cent of people need support for more than twelve months after a change to their mental wellbeing, it has been revealed.
Read about support and personalised care at Barchester care homes for anyone with mental health concerns.