Fines worth £100m levied from Lloyds Banking Group for manipulation of financial benchmarks will be given to the charity sector, including military charities.

The fines were for the manipulation of benchmarks including the London Interbank Offered Rate (Libor). Plans to give the money to charity follow earlier announcements that banking fines would be spent on military charities.

The Prime Minister and Chancellor of the Exchequer made the announcement on Friday as they visited a Royal Marines base in Poole, Dorset.

Chancellor George Osborne said: “I’m pleased to be able to allocate the fines paid by Lloyds Bank to help charities and good causes supporting our armed forces community.

“We’re using the money raised from fines on those who demonstrated the very worst of values in our society to support those who demonstrate the very best.”

The Royal Marine’s charity appeal is one charity that will benefit from the fines. It is due to receive a £1m donation in its 350th year.

Including the £100m announced last week, the government will be allocating over £300m received from fines paid by banks to support the Armed Forces Covenant, as well as what it described as "wider organisations and charitable bodies".