People with “invisible” disabilities can now apply to use Blue Badge parking permits, the Government has announced.

The Department for Transport (DfT) issued new guidance on Saturday, advising that those with conditions such as dementia or anxiety disorders could be eligible for the scheme, which allows people to park their car closer to their final destination.

However, despite the new criteria, local authorities will still have the final say on who does and does not qualify for badges, starting on August 30.

There are around 2.35 million Blue Badge holders in the UK, but the DfT could not estimate how many more people will qualify after the extension of the rules.

Transport Secretary Chris Grayling said: “As a society, we don’t do enough for people with hidden disabilities.

“I hope this change to Blue Badge guidance will make a real difference to people’s lives.”

Minister for disabled people Justin Tomlinson said: “Extending the Blue Badge scheme is a watershed moment in ensuring those with hidden disabilities are able to travel with greater ease and live more independent lives.”

The DfT is also launching a review into Blue Badge fraud, after the Local Government Association (LGA) estimated that theft of the parking permits rose by 45% in 2018, a six-fold increase since 2013.

Although more than 1,200 people faced legal action for Blue Badge misuse in 2017/18, 40% of local authorities in England did not have a policy on prosecutions.

The LGA said: “Despite limited resources, councils are trying to crack down on dishonest motorists by prosecuting offenders and seizing Blue Badges suspected of being used illegally, so it is good that the Government has listened to our concerns and has committed to a review which will support councils in tackling fraudulent use.

“People can help councils win the fight against Blue Badge fraud, by tipping us off about people they suspect are illegally using a badge, bearing in mind this new eligibility and that people’s need for a badge might not be obvious.”

Ceri Smith of disability equality charity Scope said: “This change could make a real difference for many disabled people with invisible impairments and conditions who have been shut out of the Blue Badge scheme to date.

“But in order for it to work, it’s vital that councils issue Blue Badges to people who are newly eligible to apply. More also needs to be done to ensure that there are enough allocated Blue Badge spaces near shops and amenities to meet increasing demand.”