Scunthorpe's Tata steelworkers to get £9m in help

About 900 steelworkers are set to lose their jobs at the Scunthorpe plant

Up to £9m is to be made available to help support steelworkers hit by the latest round of job cuts at a plant in Scunthorpe.

Tata Steel announced on Tuesday it was shedding 900 jobs at its North Lincoln Road site.

The company has pledged £3m to help create jobs in the town and another £6m will be provided by the government.

Statutory redundancy costs are not included in the package and would fall to the firm to fund.

The Community union, which represents the majority of those affected, said the plans were "putting the cart before the horse."

"Although any support for steel communities is to be welcomed, there is still a consultation process to go through and no worker will be redundant until that is completed," said general secretary Roy Rickhuss.

"Community is focused on looking at the rationale behind the proposals and all possible alternatives that will save jobs. It will be challenging, but all parties should be focused on the consultation."

'Unprecedented challenges'

Karl Koehler, chief executive of Tata Steel's European operations, said it was a "challenging time" for employees.

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

The industry blamed cheap Chinese imports for a collapse in steel prices.

The axing of jobs at Scunthorpe comes just weeks after the announcement that Redcar's SSI steel plant is being mothballed, with the loss of 1,700 jobs.

A financial package of "up to £80m" is being provided by the government to support workers and local businesses.

Tata Steel blamed cheap Chinese imports for a collapse in steel prices.

Tata's funding package is being matched by the government, which is also providing a separate £3m fund to help retrain affected workers.

Business Secretary Sajid Javid said: "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."

Ministers have asked Baroness Liz Redfern, leader of North Lincolnshire Council, to help co-ordinate the programmes.

Tata is providing an additional £1.5m to support job creation in steel communities in Lanarkshire, around its Dalzell site in Motherwell and Clydebridge site in Cambuslang.