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Tens of thousands of people with hidden disabilities such as autism, dementia and mental health conditions are to get blue badge parking permits from next year.

Ministers are trumpeting what they call the biggest overhaul of the scheme in 40 years as they include “invisible” disabilities in eligibility criteria.

Some councils already do this, but today’s announcement will make it common practice across the country.

The government claims it could help an extra 44,000 people in the first year and 177,700 people over 10 years.

Transport minister Jesse Norman said: “This will ensure people with hidden disabilities can enjoy the freedoms many of us take for granted.”

But some branded the decision a U-turn - after the number of blue badge holders plummeted by more than 250,000 since the Tories came to power.

Official figures show the number of valid blue badges in England fell from a 2011 peak of 2.64million to 2.38million last year.

Scroll down for full details of what the change will mean

(Image: Getty)

The move was welcomed by mental health campaigners who have long argued for equality with physical disability.

Jane Harris of the National Autistic Society said: “This will make a massive difference to autistic people and their families.

“Leaving the house is a challenge for many autistic people involving detailed preparation – and sometimes overwhelming anxiety about plans going wrong.”

Disabilities campaigner Nicky Clark, however, claimed the announcement was a "large stinking piece of bulls***" because the government had previously scaled back blue badge eligibility.

"Here’s the truth - they’re returning them," said Ms Clark, whose daughter with learning disabilities lost her eligibility when she moved to the new PIP disability benefit. "They took them away in the first place."

Shadow Home Secretary Diane Abbott told Ms Clark: "I remember you campaigning on this. The powers that be listened!"

PIP launched in 2013 to replace the old Disability Living Allowance. Only some of its 1.8million claimants are eligible for a Blue Badge.

(Image: Rex Features)

The extended scheme will mean those who cannot face a journey without serious psychological distress will qualify - and that includes some of England’s 600,000 autistic people.

Alzheimer sufferers are often in a world of their own and need to be near shop entrances to keep them out of danger.

Minister for Disabled Sarah Newton added: “Disabled people should be able to go about daily life without worrying how they’ll get from one place to another.”

James Taylor, Head of Policy and Public Affairs at disability charity Scope, added: "These changes are fantastic news.

"Many disabled people and their families have long had serious concerns about the mobility section of PIP - and its impact on getting a Blue Badge."

He added: “It’s also common sense that more Blue Badges holders will need more allocated parking spaces, so the Government must now ensure there are enough to meet demand.”

When, who and how? Full details of the change to Blue Badges

What is the Blue Badge scheme?

(Image: PA)

The badge scheme was launched in 1970 and currently around 2.4 million disabled people in England have one.

It enables them to park free of charge in pay and display bays and for up to three hours on yellow lines.

They cost £10 from local authorities, and those in London are also exempt from the Congestion Charge.

Who will now be eligible?

(Image: PA)

The government says eligibility will be extended to the following people who aren't eligible currently:

People who cannot undertake a journey without there being a risk of serious harm to their health or safety or that of any other person (such as young children with autism)

People who cannot undertake a journey without it causing them very considerable psychological distress

People who have very considerable difficulty when walking (both the physical act and experience of walking).

Many who claim disability benefit PIP are automatically eligible for a blue badge already.

However, at the moment they're eligible if they receive at least eight points for the 'mobility' portion of the benefit, under the heading 'moving around'.

That is not the same as all 1.8million people who claim PIP.

Now this automatic eligibility will be extended to more people on PIP - though still not all of them, by any means.

People who score 10 points under the 'planning and following journeys' activity because they can't undertake a journey without overwhelming psychological disress will automatically get a blue badge.

However, the government stopped short of giving an automatic blue badge to people who score 12 points and can't follow a familiar route without help. Instead these people will be decided on a case-by-case basis.

Under PIP you need 8 'points' in a category for the standard rate of benefit and 12 points for the enhanced rate.

How many people will be eligible who weren't before?

It's hard to say exactly how many people will be helped as the new rules aren't set in stone.

However, government estimates suggest it could help an extra 44,000 people in an "initial surge" over the first year, slowing down to 177,700 people over the first 10 years, who don't currently have blue badges.

This would cost councils an extra £7million in administration over the decade.

Recent estimates by the Department for Work and Pensions suggest more than 200,000 people can't complete a journey without "psychological distress".

And although not all autistic people will be eligible, there are 600,000 people with the condition in England.

However, some of these people will already be eligible.

Is it a U-turn?

Some campaigners argue vehemently that it is - see above. And it's true there are 260,000 fewer blue badges now than in 2011.

Sources at the disability charity Scope advise us that it may be a U-turn - but only partially.

Many people with learning difficulty or mental health condition did lose their automatic entitlement when moved from DLA to PIP.

However, they could apply for additional assessment.

And sources at the charity believe today's announcement "goes further than ironing out problems" with PIP, because of the extra advice about planning and following a journey.

When will the change happen?

The Department for Transport says the change - which comes after a consultation that drew 6,000 responses - will happen "early next year".

However, there is still not a set date.

The government still has to develop guidance to administer the Blue Badge scheme so that the rules are consistent. That will mean fine-tuning the detail.

Draft laws are due to be laid before Parliament later this year.