The Government will not appeal the Court of Appeal decision that says families should be paid to care for their disabled children.
Health Minister Tony Ryall said this afternoon he accepted that the policy of not paying close family members had to change.
A new policy would be developed over the next year.
Mr Ryall said the cost of paying parents would not be near the previously quoted figure of $450 million.
He said the Human Rights Review Tribunal would consider what the families should receive at a hearing expected to take place in the next six months.