The Government has pledged to provide refunds for rail and coach tickets bought for the previous Christmas travel window between December 23-27.
Transport Secretary Grant Shapps said this will apply to journeys in England booked on or after November 24, when the Christmas travel window was announced.
Mr Shapps said: "This ensures no one is left out of pocket for doing the right thing - staying home in Tier 4, and elsewhere staying local and only meeting your Christmas bubble on Christmas Day."
It comes after Boris Johnson announced a dramatic scaling back of the Government's relaxation of coronavirus restrictions over Christmas.
People were previously allowed to travel within the five day window to bubble with three households for Christmas.
But people in Tier 1-3 are now only allowed to bubble together for Christmas Day itself and won't be able to stay overnight.
People in London and the South East will not be able to meet another household at all over Christmas as they were put into the new "Tier 4".
Tier 4 has been put into place to combat cases rocketing, as the new highly infectious strain of the virus spreads across the South.
When the new Tier was announced on Saturday night thousands of people rushed to train stations and packed trains leaving the capital.
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Health secretary Matt Hancock said police officers will stop people boarding trains or driving their cars out of tier four areas following new Covid legislation.
Appearing on the BBC’s The Andrew Marr Show on Sunday the Health Secretary was asked if police would stop people getting on trains or climbing into their cars to drive to the Midlands. He replied: ‘Of course, it is the police’s responsibility to police the law, and the law came into force in the early hours this morning.’
