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Health Secretary Andy Burnham admitted today there has been a "significant increase" in the number of people suffering from swine flu in parts of the UK.
The news comes after the World Health Organisation announced the problem has become a pandemic - the first in more than 40 years.
New figures show there are 909 confirmed cases of the disease in the UK, and 28 people have been hospitalised.
But Mr Burnham urged people not to panic and said the majority of victims have already made a full recovery.
He said: "In recent days, there have been significant increases in the daily number of cases in certain parts of the UK, most notably Scotland, where Health Protection Scotland has concluded that sustained community transmission appears to be taking place.
"This is characterised by an increased number of sporadic cases; that is cases with no identifiable link with other confirmed cases. These increases come as no surprise and are in line with what we know from similar outbreaks."
Mr Burnham said the first deliveries of a new pandemic vaccine should arrive in the autumn.
About 30,000 cases of swine flu have been detected in 74 countries and 144 people have died worldwide.
Mr Burnham said: "It's important to stress that the majority of cases in the UK so far have not been severe, with those catching the virus making a full and fast recovery - though a small minority of cases have been more serious."
In London four more people were diagnosed with swine flu yesterday, bringing the capital's total to 135.
Dr Adam Kamradt-Scott, Research Fellow from the London School of Hygiene and Tropical Medicine, said: "We're fortunate that the virus is still only causing mild illness in most people it infects.
"At the moment therefore, what this means for the average person in the street is to continue doing what they're hopefully doing already: paying attention to personal hygiene measures such as regular handwashing and making sure you cover your mouth when coughing or sneezing.
"There is no need to panic, and should you start to feel unwell, stay at home and phone either your doctor or the NHS Direct for further advice."
Professor Neil Ferguson, an epidemiologist at Imperial College, London, said closing schools in large numbers would cut infection among children by a fifth and decrease the rate of the virus spreading.
