The government's change of heart over withdrawing the mobility component of the Disability Living Allowance has been welcomed by Norwood, which campaigned vigorously against the move.
Work and Pensions Minister Maria Miller has confirmed that the proposal - which would have affected up to 80,000 disabled people in care homes - will not be included in the upcoming Welfare Reform Bill.
It had been claimed by the government that those affected had their mobility costs met by their local authority. But Norwood pointed out that the vast majority of the 250 people in its residential homes received no council contribution.
Former Norwood chief executive Norma Brier had met Ms Miller as part of the charity's lobbying effort, warning that the legislation could lead to those with learning disabilities becoming prisoners in their own homes.
Mrs Brier was "delighted that the government has been prepared to reflect on the facts regarding the mobility allowance, which is given to people with severe disabilities. Without this, the quality of many thousands of people's lives would deteriorate."