The £2 coin-sized device sits on a patient's arm and continuously monitors blood glucose levels.
The user can scan the monitor in a second using an app and get a result that tells them whether their blood sugar levels are OK.
Only three out of five Type 1 patients were previously eligible for the monitors, which will now be made available to all of them.
The ruling, according to Diabetes UK, will be "transformative" for people who suffer with the disease.
"What we are seeing today is a major shift in thinking - a move to recognising that technology is a vital aspect of diabetes treatment, not just an extra luxury," said Chris Askew, the company's chief executive.
"These monitors are a win-win - they support diabetes patients to live healthier lives, reduce their risk of hospitalisation while also helping to reduce pressure on NHS services and provide better value for money for taxpayers," said Professor Partha Kar, national NHS specialty adviser for diabetes for the health service in England.
Type 1 diabetes is an autoimmune disease that cannot be prevented and affects roughly 8% of people with diabetes.
According to a study presented at the Diabetes UK Professional Conference 2022 this week, so-called flash monitoring helps diabetics increase their blood glucose levels while also improving their quality of life.
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