Boris Johnson has threatened to "privatise the a**e off" the Passport Office if it struggles to clear its backlog, a senior Government source has confirmed.
The Prime Minister even put the DVLA and other "arm's length" bodies on notice during this morning's Cabinet meeting with ministers, according to the source.
The Passport Office is understood to be swamped with backlogs needing 10-week average waiting time.
Millions of Brits up and down the country could end up missing their summer holidays because of the chaos.
The PM is said to be "horrified" at the reports and is set to summon the agency's leader for urgent talks next week.
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Home Office minister Kevin Foster warned people to apply "as soon as possible" if they were hoping to renew their outdated passports.
But the Commons heard of one woman who has waited since January to receive her daughter's new passport, with services branded "either really very good or an absolute shambles".
Conservative MP Simon Hoare described the passport backlog as "unprecedented true, but foreseeable absolutely".
Downing Street refused to be drawn on the comments but said Mr Johnson was determined to address the issue.
The Prime Minister's official spokesman said: "The PM is adamant this is a serious issue facing families and one that needs to be gripped… that’s his focus."
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The focus at present is on "clearing the backlog", the spokesman said.
Downing Street chief of staff Steve Barclay is expected to meet with the Passport Office official later this week.
Heathrow Airport chief executive John Holland-Kaye said it was "vital" that people could go on holiday this summer in case Covid travel restrictions are reintroduced.
Mr Holland-Kaye said: "Normally the Passport Office is very slick in processing passports. It's really disappointing to hear (about delays).
"If it's not resolved, it is going to mean that people can't get away.
"After two years of lockdown, we need to make sure people can have a good holiday because many of them have vouchers that they've been saving up, they've got trips of a lifetime that they've put on hold, and we don't know when things might get closed down again.
"Making the most of the summer is vital."