In the light of today's developments, the Ministry of Justice said both G4S and Serco have decided to withdraw from the competition for rehabilitation services.
This means that neither company will play a role as a lead provider of probation services in England and Wales in this competition.
The Government said it has left open the possibility of either supplier playing a supporting role, working with smaller businesses or voluntary sector providers.
Unlike Serco, G4S has not yet agreed a position on repayment over the overcharging fiasco, although discussions are continuing.
More top news
A British skier has died after he and another man fell from a cliff in the French Alps.
Dry and largely sunny today, although there will be some patchy cloud, this mainly across eastern Scotland and eastern England.
Nigel Dodds rejected a suggestion the DUP, which promised to back Theresa May's minority Government was holding the Government to ransom.