Only three of the eight North councils tested in the probe scored more than half marks.
The survey, which was carried out by over 500 young disabled people mystery shopping 103 councils across the UK, looked at how much information was available from councils on Individual Budgets.
An estimated 600,000 disabled people across the North are set to benefit from the new budgets, which are being introduced next year as part of the UK’s biggest ever shake-up of social care funding.
But Livability found local authorities are failing to provide vital information on the changes, undermining the moves to give greater choice and independence to disabled folk.
Half of phone enquiries about Individual Budgets were misdirected and almost a quarter of local authorities were unable to provide any information at all.
In the North East, Gateshead Council, which has run a pilot scheme for the budgets, came 9th in the national table and scored 10 out of 10 for having full information on their website.
But telephone operators still failed to give full details when the customer rang up and scored just five, giving an average score of 7.5.
York also scored full marks for website information and averaged a total of seven. Darlington council scored 6.5.
But Newcastle, Middlesbrough, Cumbria and Hartlepool councils all provided minimal information, with average scores of just 4.5, 2, 1.5, and 1.
Durham County Council failed to display any details at all - and failed the test.
Mary Bishop, chief executive of Livability, said: “The results of our research are extremely worrying.
“Individual Budgets have the potential to transform the lives of disabled people by giving them choice and control and yet awareness of them is woefully inadequate.”
Mark Harper, Shadow Minister for Disabled People, added: “It is clear from the report’s findings that there is still a great deal more to do to ensure that disabled people can take advantage of individual budgets.
“All the evidence says that disabled people with an individual budget have more control of their lives and better health outcomes.”
Baroness Howarth, President and Chair of the board of Trustees for Livability this week presented the charity’s concerns to Phil Hope, Minister for Care Services, and the charity will also deliver the damning findings to every MP and local authority in England.