The agency was thrown into chaos at the beginning of the summer due to a backlog caused by problems with a new computer system and new regulations requiring children to travel on their own passports.

The backlog at some passport offices was more than 10 weeks as staff struggled to process about 530,000 applications.

Jack Straw: Thanked staff

Now the government has announced that all its offices are meeting their 10-day targets for processing applications.

Home Secretary Jack Straw said the emergency measures he put in place had worked.

He said he was confident the improvements could be sustained.

Mr Straw said: "I am grateful to Passport Agency staff who have been prepared to work late at night and over weekends to help out at what has been a difficult time.

"I am also grateful to Post Office Counters staff for their hard work in processing emergency extensions at short notice."

The Home Office said the queues outside passport offices had now disappeared and travel dates were being met in "virtually all cases".

As a result the Post Office facility for free two year renewals is being withdrawn from 2 October.

Holidaymakers had to wait up to 10 weeks for their passport

Main Post Offices have been offering free over-the-counter two-year extensions since early July to help ease pressures.

Normal renewal of passports will be available from Passport Offices from 2 October and will involve the issue of a new passport book rather than exceptional extension of the old book.

Passport Agency chief executive Bernard Hordan apologised for the delays that occurred during the summer

He said: "We have issued more than 3.6m passports this year, with almost 2.3m issued in the four months between April and July.

"We have been exceptionally busy and apologise for the delays which occurred during those very busy months.

"The position on turnaround times is looking far more positive and I hope this will ease any remaining and understandable concerns travellers still may have."

In May, passport offices around the country introduced emergency measures to ensure holidaymakers got away on time.

Extra staff were taken on, and all employees were told to prioritise applications according to date of travel.

The government also introduced an advertising campaign and a telephone line to help holidaymakers.

Mr Hordan continued: "The Passport Agency is currently reviewing what went wrong this year and what lessons can be learned.