The government on Friday (April 13) announced it would fix the level of legal costs that can be claimed from package holiday sickness scams.

In doing so, it shuts a loophole the industry has long said has fuelled a rise in bogus claims and risked pushing holiday prices up.

The Ministry of Justice (MoJ) said the new rules would be enforced in the coming weeks - in time for the summer holiday season.

“Claiming compensation for being sick on holiday, when you haven’t been, is fraud,” said justice minister Rory Stewart. “This damages the travel industry and risks driving up costs for holidaymakers [and] tarnishes the reputation of British people abroad.

“That is why we are introducing measures to crack down on those who engage in this dishonest practice.”

Abta, which launched the Stop Sickness Scams campaign in response to the issue, says there has been a 500% increase in false claims from around 5,000 in 2013 to 25,000 in 2016, despite data to suggest illness in resorts has decreased in recent years.

The MoJ said since October last year, there have been at least four private prosecutions brought against fraudsters in the UK making false claims by the likes of Thomas Cook, Tui and Red Sea Holidays - including three in March alone.

Derby pair Leon Roberts and partner Jade Muzoka, who said they fell ill with food poisoning while staying at a spa resort in Turkey only to plaster jolly pictures of their trip all over Facebook, were each sentenced to 26 weeks in jail, suspended for 12 months, after bringing a claim against Tui.

Tui was forced to defend another claim, this time by Liverpool couple Chelsea Devine and Jamie Melling who said they fell ill on the fourth day of their 10-day all-inclusive holidays to Levante.

Devine and Melling did not report their illness while they were away or upon their return and like Roberts and Muzoka, posted cheery snaps on social media.

Nearly a year later, they made identical claims for around £2,500, which were swiftly dismissed. The pair were ordered to pay Tui £15,000.

Finally, Jessica Hegner and Karl Hancock from Crawley demanded £4,000 compensation from Red Sea Holidays after claiming they fell ill while holidaying in Sharm el Sheikh, but the judge found their actions “fundamentally dishonest” and ordered they pay more than £12,000 in costs - again, after the couple documented their trip on social media.

Following the ruling, Red Sea executive director Peter Kearns said it had been “open season on tour operators for too long”.

Also welcoming the ruling, Andrew Flintham, managing director Tui UK and Ireland, said: "We’ve seen a dramatic rise in fraudulent and exaggerated claims over the past few years which without continued intervention represents a real threat to the travel industry and honest holidaymakers.

"This is a great step in the right direction, however, it’s definitely not the end of the story and there’s still more work to be done with help from government and partners across the travel industry.”