Hi LilyLily,
First of all, I can't believe how similar your story is to mine, I similarly took on a PhD funded through my supervisor (albeit my first) and encountered what can only be described as unacceptable behaviour. He has constantly undermined my confidence and it has got to the stage of complaint to the head of school. I saw two welfare tutors before christmas and both first asked whether he was the problem, it seems it is well known within both the research group and the school that he behaves in this manner, in fact a student changed supervisor a few months before I began at the university (though I haven't heard the full detail of that case).

I'm currently on sick leave which soon expires and the only option that the school seem to offer is to go back or quit. I'm both broke and feel like I have little chance of winning another PhD place. I'm completely lost as to what to do. I do hope you have had more luck than myself but I can't believe that this kind of behaviour is as widespread as it seems. Something needs to be done.