£9m financial package for Scunthorpe steelworkers facing redundancy

Anti austerity protestors stand outside the Tata site in Scunthorpe. Tata Steel has announced 1,200 job cuts at sites in Scunthorpe and Lanarkshire later this morning. See rossparry copy RPYSTEEL: Unions have spoken out after Tata Steel announced nearly 1,200 job losses at plants in Scunthorpe and Lanarkshire. Nine hundred jobs will go at the firm's plant in Scunthorpe, North Lincs., while the remaining 270 jobs will go in Scotland. Paul McBean, lead rep for steel union Community, and who works at the Scunthorpe site, said: "We have been told there are 1,200 jobs to go throughout Longs which equates to about 800 people in Scunthorpe."

Anti austerity protestors stand outside the Tata site in Scunthorpe. Tata Steel has announced 1,200 job cuts at sites in Scunthorpe and Lanarkshire later this morning. See rossparry copy RPYSTEEL: Unions have spoken out after Tata Steel announced nearly 1,200 job losses at plants in Scunthorpe and Lanarkshire. Nine hundred jobs will go at the firm's plant in Scunthorpe, North Lincs., while the remaining 270 jobs will go in Scotland. Paul McBean, lead rep for steel union Community, and who works at the Scunthorpe site, said: "We have been told there are 1,200 jobs to go throughout Longs which equates to about 800 people in Scunthorpe."

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The Government and Tata Steel have announced a £9m fund to help the 1200 workers facing redundancy at the Scunthorpe steelworks.

Tata Steel’s regeneration arm UK Steel Enterprise has pledged £3 million to support job creation in Scunthorpe.

This will be matched by the UK Government with a £3m fund to support start-up businesses and companies that are looking to expand and create jobs.

They will also provide an extra £3m to train former steelworkers at further education colleges.

The Government has asked Baroness Liz Redfern, leader of North Lincolnshire Council, 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.”

Tata Steel’s UK Steel Enterprise is also providing an additional £1.5 million to support job creation in steel communities around its Dalzell and Clydebridge sites in Scotland. The UK Government is continuing discussions with the Scottish Government about further support.

Karl Koehler, Chief Executive of Tata Steel’s European operations, said: “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, said: “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 £9 million announced today by the Government and UK Steel Enterprise will provide a significant boost to the North Lincolnshire economy.”

Statutory redundancy costs are not included in this package and it is up to Tata to fund this.

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