Clamping will now only happen to persistent offenders, there will be special training for enforcement officers and an easier to follow appeal process. Parking attendants will now be referred to as civil enforcement officers.
The plans state that if a driver returns to the vehicle while a clamp is being attached or the vehicle is being removed, the operation should cease and the owner should be allowed to drive away with only a parking ticket.
The vehicle must be returned to the road unless it has 'all its wheels aboard the tow truck'.
"The Government is determined to see a parking system that is fairer and more consistent," said transport secretary Douglas Alexander.
The proposed plans also include more powers for independent adjudicators when procedures have not been followed properly, regular reviews of parking policies by local authorities and persistent parking offenders will now be targeted through a national database.
Alexander said: "We have listened to motorists and it is clear that the current system needs to be improved.
"Taken together, the proposals in this draft guidance will strengthen the system of civil parking enforcement and help local authorities tackle local congestion and keep the traffic moving."
The plans will only take affect in England and are expected to come into force next summer.