Government Announces £13.5m Funding Injection for Workers and Businesses Affected by Tata Steel Job Losses
In response to the expected loss of up to 2,800 jobs at Tata Steel’s Port Talbot plant, the government has announced a funding injection of £13.5m. This move comes as the company transitions to a greener form of steel production, which requires fewer workers.
The funding was announced by Welsh secretary Jo Stevens at her second meeting as chair of the Tata Steel/Port Talbot transition board on Thursday. The package aims to support businesses that heavily rely on Tata Steel as their main customer, as well as provide assistance to workers who have been made redundant. This will be done through access to training and qualifications in industries with job vacancies.
As part of the deal, Stevens also revealed that over 50 businesses have signed a pledge to support any workers who are forced to leave their jobs at the steelworks. Negotiations between the government and Tata Steel regarding the future of the Port Talbot plant will continue separately.
Stevens stated, “Today’s release of an initial £13.5m in funding demonstrates that we will act decisively to support workers and businesses in Port Talbot, working with Welsh government, unions, and the wider community. This government will not wait for a crisis to overtake us before acting. We are putting a safety net in place now to ensure we can back workers and businesses, whatever happens.”
When questioned about the impact of the push towards net zero on Port Talbot steelworkers, Stevens denied that they were paying the cost. She clarified, “We have to reduce emissions, we have to do that.” She further explained that the shift towards renewable energy will not only create jobs and reduce bills for individuals across the UK but also ensure energy security for the nation.
Earlier this year, Tata Steel confirmed its plans to close blast furnaces and replace them with electric arc furnaces as part of its efforts to reduce emissions and costs. This move is expected to cut carbon emissions by 85% and the UK’s overall CO2 output by 1.5%. The Port Talbot site is currently the UK’s largest emitter of CO2. The new furnace will utilize scrap metal sourced in the UK as its raw material, eliminating the need for imported iron ore.
Alun Davies, national officer for steel at the Community union, welcomed the funding announcement, stating that the government is “stepping up to provide support both to workers affected by Tata’s decarbonisation plans, and to the wider community in and around Port Talbot”. He also acknowledged Stevens for her swift action in ensuring the release of the initial funding.
However, Davies reiterated the union’s opposition to Tata’s proposed changes, stating that they will continue to fight for job protection and believe that an alternative approach is still possible.
Rajesh Nair, chief executive of Tata Steel UK, added, “The transition board plays a very important role in supporting the transformation of our business to low-CO2 steelmaking and encouraging regeneration and inward investment to the area, whilst helping to mitigate the impacts those changes may have on our people, our supply chain and our communities.” He also expressed his gratitude for the support and ambition to help the region and local communities adapt to the changing needs of the developing industrial ecosystem in South Wales.
