The Government will no longer remove the mobility component of the Disability Living Allowance for people in residential care.
The removal of the component, announced by the Department of Work and Pensions at the introduction of the Welfare Reform Bill 2011, was unpopular as it would effectively imprison a number of those needing full time care in their homes.
The Government will, however, revisit the issue in a review as part of as the wider reform of Disability Living Allowance to be introduced from 2013-14.
The cost of the move is estimated by the Treasury to cost the Government £75m until 2013.