The new scheme from Nov 2007 is Housing Aid for Older People
and the maximum grant available will be €10,500. Eligibility will be on the basis of financial need with 100% of the approved cost of works available to those with annual household incomes of less than €30,000, tapering to 30% for those with annual household incomes of €54,001 to €65,000.
So if your Uncles income plus his mothers is more than 65k a year they won't qualify under this scheme. Did they ask income figures - or did they just say they were'nt eligible because he was in work?