@Elizabeth550 Absolutely DON'T cancel any reservation to do with Covid legislation! - Not your problem! Not your responsibility! - Let the GUESTS cancel, if their party is more than 6! And let them sort the money issues between them, the guests & Airbnb!
- When the guest books, their payment sits in Airbnb's coffers, until the day after check in, when it is released to the host. So the guest needs their refund from Airbnb, the holder of their money, not you!
On the plus side the tightening up of legislation re 6 in a gathering max has gone in hand with the RELAXATION of the 2 households rule! So you're now free to host people you could not have hosted a couple of weeks ago! Including 6 people from different households! Whoopee!
I noticed they are tightening up on social gatherings eg pubs in the North East, but got the impression holidays were still allowed?