Parents with tots in prams were celebrating after the government agreed to close a loophole in the law which stopped a lollipop lady helping them across the road.
Transport Minister Lord Whitty said lollipop men and women would have increased powers allowing them to help any child or adult cross a road.
He also announced in a Commons speech that time limits governing when crossings can operate would be lifted.
The news was welcomed by parents who had been told by Leeds City Council that traffic using the stretch of road outside Calverley C of E Primary School could not be stopped for them unless they were accompanied by pupils from the school.
Councillor Andrew Carter (Con, Pudsey) said: "Clearly we need to know more about it but anything that gives more flexibility to crossing patrol attendants has to be welcome because restrictions don't help anyone at the moment."
The councillor said he'd persuaded the highways department to look at the stretch of road, known as Church Bend, as another way of improving safety.
Calverley C of E Primary School's head teacher Maureen Mason said: "It would be very beneficial to know that our lollipop lady would be covered as we are on a blind bend and many parents need help getting across.
"But it needs to be set out clearly who she can cross and time restrictions if there are any."
Parent governor Duncan Griffiths hailed it as a common sense decision that hopefully would encourage more people to walk to school with their children and use the crossing.
A spokesman for the Department of Environment, Transport and the Regions said under existing rules lollipop staff were only insured to stop traffic if adults were accompanied by pupils from the relevant school. The spokesman said the policy had always existed.
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