Government and Tata Steel pledge £9m to support 900 Scunthorpe steelworkers

The local economy and employees affected by the 900 job cuts at the Tata Steel plant in Scunthorpe will receive help with an initial support package of up to £9m from the Government and the steel-making firm.

UK Steel Enterprise, Tata Steel’s regeneration arm, has pledged £3m to support job creation in Scunthorpe, in addition to the £10m it has already put aside to help regenerate UK steel communities over the next five years.

The UK Government will match the new £3m funding, which will provide support for more start-up businesses and companies that are looking to expand and create jobs.

Furthermore, the Government is separately providing up to £3m specifically for training of affected employees through local further education colleges.

Baroness Liz Redfern, leader of North Lincolnshire Council, has been asked to lead a taskforce which will identify local needs, co-ordinate with UK Steel Enterprise and consider whether additional support may be necessary.

Business Secretary Sajid Javid said: “This is a very difficult time for the workforce, so it is important that the Government and the company have come together to support people and the local economy.

“The Government has no intention of simply standing aside whilst the steel industry faces global challenges on a scale unprecedented in recent years. We will do everything we can to help workers and to ensure a level playing field for the industry.

“Tata Steel has a strong track record of creating jobs and supporting local communities right across the country, and its commitment to this package today is to be commended.”

Karl Koehler, Chief Executive of Tata Steel’s European operations, added: “I recognise this is a challenging time for the employees affected by the restructuring we announced.

“We are committed to doing everything in our power to support those impacted and through UK Steel Enterprise we will help create new jobs in the affected local communities.

“The UK steel industry is facing extremely challenging circumstances and we welcome the Government’s pledge to match our funding package for those affected.”

Lady Redfern, chair of the local taskforce, also commented: “We have been really well supported, with ministers, right up to the Prime Minister and the local MP’s, particularly Andrew Percy who has worked with us to create our list of asks from Government.

“The £9m announced today by the Government and UK Steel Enterprise will provide a significant boost to the North Lincolnshire economy. We intend to work quickly to help people who have lost their jobs to ensure that every element of support is available, whilst at the same time encouraging new businesses to start and grow in North Lincolnshire.”