Tata Steel and the UK government commit £9m to help Scunthorpe steel workers

 
James Nickerson
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Some 900 jobs will go in Scunthorpe (Source: Getty)

The Department for Business, Innovation and Skills, alongside Tata Steel, have announced an initial support package of up to £9m to support Scunthorpe steelworkers and the local community.

Tata Steel announced earlier this week that it was cutting up to 1,200 jobs in Scunthorpe and Scotland as it scales back operations. Some 900 jobs will go in Scunthorpe alone.

Read more: This chart shows the decline of the UK's steel industry

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

The government, meanwhile, will be separately giving up to £3m for training of affected employees through further education colleges. Another £3m from the government will aim to provide support for more start-up businesses and companies that are looking to expand and create jobs.

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."

Read more: Politicians and industry figures struggle to solve UK steel crisis

Karl Koehler echoed Javid's sentiments, adding: “The UK steel industry is facing extremely challenging circumstances and we welcome the Government’s pledge to match our funding package for those affected.”

Business ministers and industry figures are set to be grilled on Tuesday by a committee of MPs over the crisis hammering the UK steel sector

The BIS Select Committee hearing will address the challenges facing the industry, which is struggling to compete in the global marketplace due to an influx of cheap steel from China, high energy costs, high business rates and a strong pound.

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