'More to do' to offset Redcar SSI closure, says report

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SSI UK steel blast furnace site, RedcarImage source, Getty Images
Image caption,

The Redcar plant was mothballed in September 2015, then fully shut down a month later

A report into the closure of Redcar's SSI steelworks in 2015, shows the majority of those made redundant are no longer claiming benefits.

The report, by a task force set up after 2,200 people lost their jobs in October, also reveals half of an £80m state grant has been spent.

But despite the creation of 841 new jobs and 172 new businesses more needs to be done, the town's MP has said.

The government described the task force report as "encouraging".

The report shows that, taking into account apprenticeships, training placements and retirements, 90% of those made redundant are no longer claiming benefits.

The task force's chair Amanda Skelton said: "The closure was a devastating event for workers, families and the wider community.

"We recognise there is more to be done to rebuild our community and economy so that we can secure a sustainable future for our area in the long term."

'Lower pay'

Redcar's Labour MP Anna Turley said: "It is clear some progress has been achieved, putting in place training courses, subsidising local businesses to take on ex-steelworkers and helping others to set up on their own.

"But there are many struggling and much more needs to be done to create more opportunities."

A spokesman for the union Community added: "Many of our members who used to work at SSI now tell us they're facing lower pay compared to what they earned at the steelworks.

"While new employment is necessary and welcome, the quality of employment and earnings levels are vastly different."

"It is vital that government continues to invest in the regeneration of Redcar."

Business and Energy Secretary Greg Clark said: "This report shows the encouraging progress made so far, but government is clear there is more we can do to support local growth in the area."

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