Sam (30) has served in Northern Ireland, Iraq and Afghanistan, but now relies on a prosthetic leg and suffers from post traumatic stress disorder.
He said: “I am really pleased that they are reinstating the benefit and I think it was a blatant mistake that they made.
“I thought it was ridiculous to suggest that I didn’t need help getting around considering that I have lost a leg.
“And the fact that I lost a leg fighting for my country made it even harder to take when they rejected me it felt like I had been betrayed.”
A spokeswoman for the DWP said: “Decisions can be overturned if we are supplied with new information that isn’t provided at the time the original claim is made.”