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Solicitor Richard Stein has warned disabled people are facing eviction following today's 'bedroom tax' ruling and the families he represents would be appealing the decision.
Mr Stein said on the steps of the Royal Courts of Justice: "Our clients are bitterly disappointed with today's decision, but they are not defeated.
"We, along with the other lawyers acting on behalf of adults with disabilities, will appeal this judgement and we remain confident that the discrimination which was recognised by the court and which has been perpetrated against our clients by this legislation is not justified and is unlawful."
A DWP spokesman has said: "We are pleased with today's result. The government has always felt it has met its equality duties fully and it is pleased the court has agreed with us."
The government has said it will make its current guidance, that severely disabled children do not need to share a room with other siblings, law by Autumn.
The government has also announced an extra £35 million to help councils support social housing tenants entitled to the hardship fund, known as discretionary housing payments. This will be broken down as:
- £10 million will be given to councils throughout Britain to use as they wish, with the assumption it will go into the discretionary housing payments fund.
- £5 million will go to the 21 most rural areas to help people find adequate housing.
- £20 million in additional funding will be given to councils if they demonstrate there is a further need.
- Read: What is the Government's controversial 'bedroom tax'?
Lawyers representing those who mounted the 'bedroom tax' legal challenge say they will fight on after losing the bid.
Ten families brought the case, arguing the so called 'bedroom tax' was unfair to disabled tenants.
The High Court has dismissed a legal challenge over claims that the Government's so-called "bedroom tax" unlawfully discriminates against disabled people in social housing.
Anne McMurdie, the lawyer representing some of the 10 families challenging the government's so-called 'bedroom tax' has told Daybreak that the affect of the new housing benefit changes was that entitlements could be cut by £12 to £14.
Tenants with one spare bedroom have had a payment reduction of 14% and those deemed to have two or more spare a reduction of 25%.
Lawyers for the 11 cases say that, unless the families move from their homes into smaller properties, they face building up rent arrears and being forced out any way.
The High Court rules today on whether the Government's so-called "bedroom tax" unlawfully discriminates against disabled people in social housing.
New housing benefit regulations, introduced on April 1, led to reductions in benefit payments to tenants assessed to be under-occupying their accommodation.
Under new ''size criteria'', tenants with one spare bedroom have had a payment reduction of 14% and those deemed to have two or more spare, a reduction of 25%.