Government release ‘emergency’ £13.5m to tackle Tata Steel Port Talbot job losses

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WORKERS and local businesses effected by energy transition of Tata Steel’s Port Talbot steel plant are set to benefit from an “emergency” cash injection of £13.5m (US$17.6m) from the UK government.

Tata Steel will be closing its last blast furnace at the plant next month, opting instead to begin using a less energy and labour intensive electric arc furnace for steel production. The move will likely result in the loss of 2,800 jobs.

The government announced a £100m Tata Steel/Port Talbot Transition Board fund last year to support businesses who relied on Tata Steel as their primary customer, and workers who may need help with upskilling and employment.

Jo Stevens, secretary of state for Wales, said: “These funds – the first to be released through the Transition Board since it was set up ten months ago under the previous government – will address the immediate emergency caused by the uncertainty around Port Talbot’s future.”

Business support for workers

Stevens added that 50 businesses and organisations, including Fintech Wales, RWE Energy, and Cardiff Metropolitan University, have pledged to provide education, skills training, and free financial advice and housing support to affected workers.

Stevens said: “We are harnessing the generosity of the local community, with dozens of employers so far pledging practical support for workers.

“Steelmaking is the lifeblood of communities in Wales, but so too is the support of local businesses. What they are offering will make a real difference to suppliers and staff.”

The £100m pot of support funding from the Transition Board will be spread over a decade, with the board also looking to secure alternative investment that aims to “at least replace” the economic value of the impending job losses.