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A radical overhaul of the Blue Badge scheme was announced today by transport minister and Gillingham MP Paul Clark.
Up to £55 million will be dedicated to ensuring the disabled parking scheme meets the needs of the 21st Century.
The government wants to give councils the power to confiscate stolen or forged Blue Badges immediately when they find them.
This is to help reduce Blue Badge associated vehicle crime, as well as safeguarding key parking.
The biggest review of the Blue Badge, since it was created in 1971, will also enable more people than ever to retain their independence.
The strategy commits to extending the scheme to seriously disabled Armed Forces personnel and veterans, people with temporary but serious mobility problems, young children with specific disabilities and individuals with severe mental impairments.
Mr Clark, said:"The Blue Badge already provides a vital lifeline for more than 2.3 million disabled people in England.
"It helps them retain their independence by making it easier to access vital services, visit friends and family, as well as to seek work or education.
"That is why it is so important to make sure that it meets the needs of today's society.