The 12-year-old was treated with the drug in hospital after the Home Office granted a 20-day licence for the use of the banned substance.
His mother says his seizures are reduced when he takes the oil and has called for it to be freely available.
The government is creating an expert panel to look into individual cases.
Home Office Minister Nick Hurd told the House of Commons that the panel of clinicians, led by England’s chief medical officer Dame Sally Davies, will advise ministers on any applications to prescribe the drug.
He said Billy’s case had “shone a light” on the matter and “highlighted the need for the government to explore the issue and our handling of these issues further”.
Last week officials at Heathrow Airport confiscated Billy’s cannabis oil, which his mother Charlotte Caldwell had been attempting to bring into the UK from Canada.
It contains a substance called Tetrahydrocannabinol (THC), which is illegal in the UK but available elsewhere.
She said that Billy had been taken to hospital in a “life-threatening condition” on Friday evening, leading the Home Office to intervene.
During the weekend, Home Secretary Sajid Javid granted a team at Chelsea and Westminster Hospital the 20-day licence to administer the medicine.
Ms Caldwell said: “The fact that Billy has been discharged is testimony to the effectiveness of the treatment and underlines how vital
“it is that every child and every single family affected in our country should have immediate access to the very same medication.”
The mother said she has rented a flat in order to facilitate this temporary treatment.
But she wants the law to be reformed, so Billy can have the medication administered at home.
“I will demand that the health department, not the Home Office, takes responsibility for providing access to medication for these incredibly sick children – this meeting must take place within 24 hours,” Ms Caldwell said on Monday afternoon
“Children in our country are dying and suffering beyond imagination.”
It is uncertain what will happen when Billy’s 20-day licence expires, and whether the Home Office will continue to allow him to use the drug.
Raising an urgent question on the issue in the Commons, Gower MP Tonia Antoniazzi said there were two children in her constituency who have a serious life-limiting condition and could “benefit hugely” from medicinal cannabis.
Other MPs also raised cases. Former Conservative leader Iain Duncan Smith – who said he is “by no means a supporter of recreational cannabis use” – shared the case of a woman who, after being given two weeks to live because of a brain tumour, used a form of the drug to get rid of the tumour.
“In the health department, it is still not considered a good thing to do to investigate the medicinal properties of this particular drug,” he said.
“I would urge him if at all possible to try and get some coalition on this to get this investigated because there clearly are medicinal preparations that can be used,” he added.
Supporters of the Caldwell’s cause include the MP leading an all-party parliamentary group looking at medical cannabis, Sir Mike Penning.
He called the existing laws “bizarre and cruel”, and added that “fundamental reform of the system” was needed.
“Medical cannabis is a health issue, not a misuse of drugs issue,” Sir Mike said in a statement. “It’s about patients and relieving suffering.”
Does cannabis have medicinal benefits?
CBD and Tetrahydrocannabinol (THC) are two types of cannabinoids found naturally in the resin of the marijuana plant.
A cannabis-based drug called Sativex has been licensed in the UK to treat MS. It contains THC and CBD.
Doctors could, in theory, prescribe it for other things outside of this licence, but at their own risk.
MS patients prescribed Sativex, who resupply it to other people, also face prosecution.
Another licensed treatment is Nabilone.
It contains an artificial version of THC and can be given to cancer patients to help relieve nausea during chemotherapy.
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