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.
We are pleased to learn that the court has found in our favour and agreed that we have fulfilled our equality duties to disabled people.
Reform of housing benefiting the social sector is essential, so the taxpayer does not pay for people’s extra bedrooms. But we have ensured extra discretionary housing support is in place to help those who need it and today we have announced a further £35m of funding to councils to aid residents.
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.