The government has promised to provide NHS trusts with the money so they can offer free parking to workers at hospital auto parks.
The announcement comes after mounting public pressure, with over 400,000 people signing a petition, set up by an NHS GP, for the fees to be scrapped.
Matt Hancock, health secretary, said: "Our NHS is facing an unprecedented challenge, and I will do everything I can to ensure our dedicated staff have whatever they need during this time".
He said he hoped the government would "do what is right" and scrap charges at work auto parks for NHS staff permanently.
NHS workers have been offered welcome financial relief thanks to an initiative that allows them to park for free at more than 900 auto parks.
The changes will apply to all on-street parking and open, council-run auto parks including pay and display and will suspend charges for health workers, social care workers and NHS volunteers.
Many councils have already suspended parking charges for key workers as part of the national effort to tackle coronavirus.
However, NHS staff can now enter their work email address to receive a code that gives them free parking at more than 900 vehicle parks, with companies such as Morrisons, Atlas Hotels and Grosvenor Casinos offering their locations. Government is rightly committing to providing the financial backing NHS Trusts need to make this a reality in hospitals for the duration of this viral outbreak.
Under new measures agreed by Local Government Secretary Rt Hon Robert Jenrick MP, all councils in England and the Local Government Association critical key workers will also be able to use council parking bays without time restriction or charge.
The National Car Parking Group earlier confirmed it would offer free parking to NHS staff at its 150 car parks in England. The Royal Free, in north London, suspended parking charges in staff vehicle parks at the weekend after pressure from campaigners. There had been a two-year waiting list for permits at the hospital, meaning staff who did not have a permit had to pay £10 per shift to park. "Free parking will make a big difference for hundreds of thousands of frontline staff", he said.