Disabled people in Lichfield and Burntwood will avoid a planned £10 charge for their blue parking badge.
The Government had suggested the charge be put in place from January 1, but Staffordshire County Council has confirmed that they will keep the scheme free.
The announcement has been hailed as fantastic start to the new year by disabled campaigners.
Gill Wyatt, chief executive of South Staffordshire Carers Association, applauded the move.
“This is great news and really welcome in the current climate of cuts,” she said.
Matthew Ellis, Staffordshire County Council’s cabinet member for adults’ wellbeing, added: “Staffordshire is a very rural county and for many disabled people their car is a lifeline.
“While the Government has suggested a £10 charge, and most areas have adopted that approach, we will not be passing on the cost in Staffordshire.
“The county council has fundamentally improved the way the Blue Badges are processed which means we have reduced those processing costs substantially.
“This is another example of how our careful and balanced management of finances means we can continue to deliver the vital front line services that matter.”