The council is showing the red card to match-day “scratch card” parking permits which residents living near the football ground in Falmer had to buy if they had guests.
The “scratch permits” were brought in last year, replacing the previous system of free permits in Coldean and Moulsecoomb on Brighton and Hove Albion match days.
Brighton and Hove City Council said that it was doing a three-point turn and hitting reverse after listening to feedback from residents.
Labour councillor Mitchie Alexander, who represents Coldean and Stanmer, said “I’m really pleased that we’ve been able to return to free guest permits for residents in zones B and D.”
“We arranged public meetings and listened to what people had to say. Ultimately, residents in Coldean and Moulsecoomb shouldn’t be out of pocket because of games at the Amex – and your local Labour councillors will keeping working hard to ensure that they aren’t.”
Everyone living in the affected areas are being sent new guest permits this month.
The council will then bring in a “virtual” system in the summer, allowing residents to register guest permits without needing a paper copy.
Help and support is promised for “digitally excluded” residents.
The council said: “The initial change was made to combat potential fraud (and) reselling of permits but residents made clear that the change was not supported – and ultimately cost them to have visitors on certain days.”
Residents in zones B and D are due to receive two paper permits by post this month, along with a letter explaining how to use the permits.
The council plans to write to them again in late May to tell them how they can apply for the new virtual permits.
When next season starts, the council is likely to rely on warning notices instead of parking tickets in the first instance.
But after a grace period, anyone who parks on a match day or event day without an activated virtual permit can expect to receive a penalty charge notice (PCN).
Every resident 17 and over will be entitled to one event-day permit based on their vehicle registration – their number plate – and one free transferrable guest permit.
The council added: “Further details of the system will be refined in the coming months, aligned with customer needs, service requirements and the ongoing parking review.”