The decision to charge disabled visitors £4 to park at Barnet Hospital has been overturned by hospital bosses due to public pressure.
Barnet and Chase Farm NHS Hospitals Trust, which manages the hospital in Wellhouse Lane, Barnet, introduced the charge for disabled drivers in April.
Disabled motorists, who had previously been allowed to park for free, found themselves included in a general parking price hike from £3 to £4.
But due to the negative reaction from the public, MPs and patients' groups who were concerned about the impact on disabled visitors, many of whom have limited incomes the trust is withdrawing the charge as of June 1.
Trust chief executive Averil Dongworth said: "As an organisation, we do listen carefully to our patients and the local community.
"Our core aim has always been to provide the best possible NHS service for the local area, and we feel that reinstating free parking for disabled drivers is the best option in light of the feedback we have received."
The trust, which recently revealed an underlying deficit of £25.1 million, estimates that the charges would have generated an annual income of around £15,000.
It is looking at ways to save money and has already identified around £13.8m worth of savings for this year, with another £12m for 2007-08.
Andrew Dismore, MP for Hendon, who campaigned against the charge, said: "I think it was a daft decision in the first place which wasn't going to bring in much money.
"The trust would have had to install more parking meters so it would have cost them more than the income generated."
Alex Nunes, chairman of the Patient and Public Involvement forum, agreed. "It's the right outcome and we are delighted," he said.
A spokesman for the trust said the decision to stop providing free parking for disabled drivers had brought it into line with many other NHS organisations, as there is no statutory duty to provide free parking.
In February it was revealed that the trust made £1m from parking charges last year.