James Barber, from the disabled-led charity Transport for All, called it a “real win for disabled people” and “very welcome news”.
He said it would also help to put an end to “the confusing and unjust postcode lottery caused by different rules in different areas”.
Disability Rights UK also welcomed the move, but added that it was “only part of the journey” and work still needed to be done to ensure eligibility for the passes was applied consistently across the country.
“The government must work with disabled people’s organisations to ensure the whole system is transformed and not just the time we use that system,” they said.
Kurtis Crossthorn from Sheffield, who is registered blind, said the change would be “very welcome” and would make many disabled people feel “relieved” and “heard”.
“Disabled people need to get to work and need to live their life as well,” he added, describing buses as a “lifeline” particularly for those in community who cannot drive.
The new changes will come into force on 1 April.
The £60m scheme will be funded from the budgets of the Department for Transport and Department for Work and Pensions, the government said.
Work and Pensions minister Lilian Greenwood MP said the change was an “indefinite commitment” rather than a short-term policy, and that the government would look at how to fund this in following years during spending reviews.
As part of its focus on reducing the cost of living, the government has already introduced free bus travel for under-16s during August, as well as a £2 bus fare cap for single tickets, which bus companies have been encouraged to opt into.
It has also cut business rates for pubs and axed VAT from electricity bills.
Around the UK, disabled people in Scotland and Wales are already entitled to free bus travel, while in Northern Ireland, blind people and disabled war veterans are able to travel for free, while it is a half-fare for everyone else who holds a disabled bus pass.
