Five firms that provided councils with prepaid cards for vulnerable people have been fined more than £33m by the UK regulator for ‘cartel behaviour'.

The Payment Systems Regulator (PSR) found the five parties infringed competition law by agreeing not to compete or poach each other's customers in the prepaid cards market.

Managing director of PSR, Chris Hemsley, said: ‘This case is particularly serious because the illegal cartel behaviour meant there was less competition and choice for local authorities.

'This means they may have missed out on cheaper or better-quality products which were used by some of the most vulnerable in society.'