The chaos surrounding the cancer dye alert deepened yesterday as local authorities chased up the removal of potentially-affected foods from schools and hospitals.

Two leading catering companies - 3663 and Brakes - said they had supplied foods which were listed in the biggest food recall in British history to schools and hospitals.

The food giants, which also hold major contracts with pubs and restaurants, said they had ordered a recall of all potentially contaminated items as soon as they were contacted about the problem.

The alert was sparked when a consignment of Crosse & Blackwell Worcester Sauce, made by Premier Foods, was found to contain chilli powder contaminated with the banned Sudan 1 dye. Sudan 1 is normally used as a colouring in solvents, oils, waxes, petrol, and shoe and floor polish.

Experts warn it could contribute to an increased risk of cancer, although they add there is unlikely to be an immediate risk to health.

Yesterday, a spokesman for the Food Standard Agency (FSA) said local authorities were checking that potentially affected products were being withdrawn. "Some affected Worcester Sauce produced by Premier Foods may have been used in the catering sector," he said.

"Premier Foods are responsible for ensuring these products are withdrawn. The risk is very small. Local authorities are routinely asked to inform and check that food businesses - including the catering departments of schools and hospitals - are withdrawing affected products.

"This is a standard request." Premier Foods insisted it was doing all it could to resolve the problem.

A spokeswoman said: "Pre-mier Foods are taking the matter incredibly seriously and they are investigating all factors but are not making any further comment at the moment."

A spokesman for 3663, which has 30,000 British customers, said the risk of affected foods reaching dinner plates in schools or hospitals was "very low".

Brakes confirmed it has put a hold on three of its own brand meals and a number of other items distributed to customers across the country.

A statement said: "A very small amount of Brakes products are affected by this. We have put these products on hold and isolated them within our network. We are currently communicating with those customers affected and will collect any affected product they may have."

The Department of Health said it was not possible to pinpoint hospital food to a particular catering company.

"There is no one supplier of hospital food," a spokesman said. "Individual hospital trusts make their own arrangements with suppliers, and the FSA advice is for hospital trusts to contact their local suppliers for more information.

"Many hospital trusts buy their food using suppliers identified through the NHS Purchasing and Supply Agency (PASA). NHS PASA is contacting all its suppliers and has published details of any contaminated products via its website.

"This list is being updated as more information becomes available."

Catering companies and ready meal manufacturers commonly use the affected Worcester Sauce as a seasoning and the FSA has confirmed 420 linked products as being contaminated.

Two Essex-based firms had handled the contaminated chilli powder, East Anglian Food Ingredients (EAFI) and Unbar Rothon.