Can bailiffs clamp a car displaying a blue badge even when the debtor does not live there?

No

Enforcement agents cannot take control of any vehicle displaying a blue badge if the vehicle is used for the carriage of a disabled person.^[1]

The debtor can sue for the breach by bringing an action against the creditor.^[2]

^{[1] Regulation 4(1)(d) of the Taking Control of Goods Regulations 2013
[2] Paragraph 66 of Schedule 12 to the Tribunals, Courts and Enforcement Act 2007}