The Welsh proposals come as part of a review commissioned by social justice and regeneration minister Edwina Hart into the Disabled Facilities Grant, which helps families with disabled children pay for adaptations to their homes.
The review recommends an abolition of means testing for the grant, with the additional costs - estimated to be around 2m over two to three years - borne by the Welsh Assembly. The idea will be examined this week by the Welsh Assembly's social justice and regeneration committee.
A submission to the review by a coalition of charities, including Barnardo's, Mencap and The Children's Society, said the means testing process was putting too many families in "impossible" financial positions.
They cited one family with an annual income of 14,000 who were told that they needed to pay a 10,000 contribution to adaptations.
The recommendations follow the abolition of the means testing system in Northern Ireland in February 2004.
But a spokeswoman for the Office of the Deputy Prime Minister (ODPM), which is currently reviewing the means test in England, said that the results from Wales had "nothing to do with English policy".
She doubted whether the recommendation would have an effect on the ODPM review.
Disability rights commissioner Philippa Russell said the Welsh review should inform the ODPM review. She was backed by Mencap chief executive Jo Williams, who urged the Welsh Assembly to quickly endorse the recommendation, and called on England to follow suit.
More than 100 MPs from all parties have added their support to a campaign to abolish the means test in England. Liberal Democrat children's spokeswoman Annette Brooke MP said she hoped the Government would follow suit. "There is a lot of cross-party support here," she said.
