Speaking in parliament, Boris Johnson said the cabinet had approved the axing of the requirement for a Covid test before travellers leave for the UK.
Changes will apply for arrivals into the UK from 4am on Friday (7 January), but with the key PCR change applicable from 4am Sunday.
The news will come as a major boost to travel industry during the peak holiday selling period.
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Johnson told parliament that “where specific measures are no longer serving their purpose they will be dropped", adding: “Now Omicron is so prevalent, these measures are having limited impact on the growth in cases whilst continuing to pose significant costs to our travel industry.”
He said pre-departure test discouraged many from travelling overseas for fear of being trapped and incurring extra expense.
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Johnson also spelled out changes to take effect in England: “We will also be lifting the requirement to self-isolate on arrival until receipt of a negative PCR, returning instead to the system we had in October last year.
"Those arriving in England will need to take a lateral flow test no later than the end of day two, and if positive, a further PCR test to help us identify any new variants at the border.”
Transport secretary Grant Shapps said a full review of travel measures would take place “by the end of January to ensure a stable system is in place for 2022”.
He confirmed all fully vaccinated people, including under 18s arriving in England from 4am on Sunday will only need to take a lateral flow test.
From 4am Friday, there will be no need to self-isolate while waiting for post-arrival test results.
Shapps also confirmed fully vaccinated passengers and the under 18s will no longer need pre-departure tests if arriving in England after 4am on Friday.
