The benefit is largely aimed at those with a long-term illness and over 50-year-olds who are unable to find work.
But latest figures show that there are 99,630 18- to 24-year-olds and 1,240 16- to 17-year-olds receiving the benefit.
Among the 18- to 24-year-olds, 20,000 have been receiving incapacity benefit for more than five years.
The government is concerned about the number of young people receiving incapacity benefit as the support offered with it is not tailored to their age group.
A DWP spokeswoman said young people on the benefit had effectively been "abandoned".
"While some of these young people need the intensive support, there will be others who want to work but have been shuffled on to the old-style sickness scheme without any real long-term view of how to help them get off benefits and into a job," she added.
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