Cornwall Council accepts the findings of the Local Government and Social Care Ombudsman report published today.
Cornwall’s portfolio holder for adults Councillor Rob Rotchell said: "We apologise for any distress caused to the individuals involved.
"We have carried out all the recommendations in the report including reinstating the direct payments. We have worked extensively to engage with the family to ensure the right care is in place.
“We are sharing with our colleagues the lessons learned in this case about direct payments and the use of medical evidence.”