The government’s new ‘rule of six’ has forced friends and families to cancel autumn staycations in what’s come as another blow to the domestic tourism industry.

From Monday it will be illegal for seven or more people to gather indoors and outdoors, ruining potentially thousands of planned trips.

It is not clear how long the new law will be in force but chief medical officer Chris Whitty said yesterday that it is ‘very unlikely to be over in two or three weeks’.

Accommodation owners say they are already receiving calls from holidaymakers wishing to cancel large bookings at cottages and cabins.

York-based Lost Earth Adventures said August had been the busiest month on record as people chose to holiday closer to home rather than travel abroad. The new rule has quashed hopes the trend might continue in the coming months.

Director Richard Goodey told the Guardian: ‘I’ve just had an email from a group of 10 who have cancelled because they want to do the activity together but we are not allowed to do that now.’

The new rule has been introduced in response to a worrying rise in coronavirus infections which officials say is being driven by young people socialising.

Center Parcs also said they are receiving a high volume of calls from people who had booked larger cabins.

A statement on Twitter said they are awaiting clarity on what the change means for them and will update guests soon.

Which? Travel said the new rule will likely disrupt many holidays in England that have already been paid for, leaving people with questions over whether they will be able to get their money back.

Some travel companies are only offering credit notes, but Which? says regulations introduced earlier this year to guarantee refunds on cancelled flights would also protect people who have to cancel staycations.

Editor Rory Boland said: ‘Following the Competition and Market Authority’s (CMA) intervention earlier this year on UK holiday accommodation cancellations and refunds, anyone with a booking that cannot go ahead as a result of lockdown laws should be entitled to a full refund.

‘Holiday providers should refund any affected customers to prevent anyone being left out of pocket for obeying the law, and the regulator must be ready to come down strongly on any accommodation providers failing to do so.’

However, Log House Holidays in the Cotswolds told The Guardian: ‘The situation is not the same as lockdown. We are now up and running and we hope that customers will accept a credit note for a future booking.’

When asked about rights to refunds by MoneySavingExpert, the government also pointed to guidance from the CMA, which says that consumers should get a refund if they cancel or can’t use a service because of government health measures. 

It is not clear how much protection this could actually offer though, as CMA guidance isn’t a definitive interpretation of the law.

Holiday providers may also be able to argue against a refund on the basis that six people in the booking could still go.

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