The government is reconsidering whether disabled people in England can apply for more than £30,000 of funding to retrofit their homes.
Ministers have agreed to review the cap on the Disability Facilities Grant (DFG) following a court challenge.
The grant covers the cost of alterations, such as installing a wet room or stairlift.
England’s claims cap has not been raised since 2008 and a commitment was made to increase it in 2021. shelved by the previous government.
Lawyers for a six-year-old boy with autism and other needs applied to the High Court for a judicial review in July.
The child, who has not been named for legal reasons, lives in a one-bedroom house in Tower Hamlets, London, which needs an extension to provide another bedroom and space for his equipment.
The estimated cost of the work was £100,000, well over the £30,000 limit.
Labor ministers decided the new government would not respond to the legal challenge and instead agreed to a review that must be completed by spring.
It will include an assessment of the impact on disabled people who are unable to adapt because the cost exceeds £30,000.
In a statement released by attorney Irving Mitchell, the boy’s mother said their current living arrangements “do not allow us to meet our son’s specific needs.”
She said: “Everyone agrees this extension is vital, but it is no comfort or solution when the available funding does not cover even half of the cost.
“Hopefully this decision will now start to change people’s lives for the better, allowing disabled people and their families to live with the dignity they deserve and the chance to live a normal life.”
Municipalities can provide their own additional funding above the cap, but the amount varies by region.
There is no guarantee that this review will result in an increase in England’s cap.
A review conducted in 2018 found that £30,000 was often insufficient to meet adaptation costs and recommended that the maximum amount should be raised through inflation.
Amy Little, head of advocacy at disability charity Leonard Cheshire, said: “It’s not easy to find accessible housing, which is why the Disability Facilities Grant is so important More people with disabilities are crucial.
A spokesman for the Department of Health and Social Care said the government was “committed to ensuring everyone lives a dignified life”.
They added that the Chancellor has pledged to increase Disability Facilities Grant by £86 million next year, saying “this will support nearly 8,000 additional home adaptations, increasing the independence of people with care needs and reducing hospital admissions”.