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Support fund for businesses and workers more than doubled to £30m.
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More supply chain businesses will be eligible to apply for support in response to significant interest from businesses reliant on Tata Steel Port Talbot.
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Businesses now able to claim grants of up to £250,000 to invest in equipment, property, technology.
The UK Government is announcing a £15 million boost to steel support funds, more than doubling the funding available to support supply chain businesses and workers affected by changes at Tata Steel’s Port Talbot site.
Chairing the latest meeting of the Transition Board today (19 December) Welsh Secretary Jo Stevens will announce the doubling of a fund to support businesses across Wales heavily reliant on Tata steel to £30m.
New eligibility criteria will mean more businesses will now be able to apply for the funds, and the value of individual grants also increasing to up to £250,000 for businesses to invest in equipment, property, technology.
It comes following significant demand on the existing funding, with almost 40 businesses employing 2,000 people having begun the application process. Grants worth millions of pounds are expected to be released in the new year.
The funding, which comes from the UK Government’s £80m Tata Steel / Port Talbot Transition Board fund, supports businesses in Tata Steel’s supply chain to turn towards new markets and customers where necessary to protect jobs and the local economy.
It is also available to workers affected by the transition to help them find new jobs, access training, and gain skills and qualifications in areas where there are vacancies.
The increase in funding announced today is in anticipation of more people leaving Tata in early 2025 through the company’s Voluntary Redundancy scheme.
Welsh Secretary Jo Stevens said
This government is acting decisively to support workers and businesses in Port Talbot.
We are doubling the funding available to businesses and workers and widening access to grants to ensure we support as many people as possible.
In just four months we have announced more than £40m in investment. We said we would back workers and businesses affected by the transition at Port Talbot and we are doing exactly that.
While this remains a very difficult time for Tata workers, their families and the community, we are determined to support workers and businesses in our Welsh steel industry, whatever happens.
Port Talbot-based engineering firm JES Group is retraining former Port Talbot steelworkers, some of whom have accessed Transition Board funding, as welders.
Curtis Reece, Welding Instructor for The Skills Academy, said
The renewable sector is developing quickly and there are not enough skilled people in the workforce. JES Group, through the Skills Academy, are hoping we can help as many people as possible.
Welding is a rewarding vocational job and a brilliant career that leads to so many different avenues.
This is the third announcement of funding from the Transition Board. As well as the initial announcement of support for supply chain businesses to find new markets and workers affected to re-train, which has today been more than doubled, the Welsh Secretary announced in November that a £13m business start-up and resilience fund would include
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A business start-up fund which will enable Tata Steelworkers, their immediate family members and people in the supply chain to receive support, guidance and to access a grant. People looking to set up new firms will be able to access non-repayable grants of up to £50,000.
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A new business growth fund to support firms already in operation who are seeking to increase their role in the local economy. Grants available will range between £25,001 and £300,000 tailored to the specific needs of each business.
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A business resilience fund providing targeted assistance to local businesses affected by the ongoing transition at Tata Steel to diversify into new markets, create new jobs and to find opportunities in emerging sectors with grants ranging from £2,500 to £50,000.
It means that, in total, £42.8m in support has now been allocated by the Transition Board since July.
Businesses or individuals interested in applying for any of the funds can find information on the Tata Steel Transition Information Hub and can contact [email protected]. The Hub also contains details of other support for workers and businesses affected by the transition.
In an addition to the financial support announced, more than 50 businesses so far have signed a pledge to support any workers forced to leave their jobs in the steelworks.
The businesses, which include Fintech Wales, The Royal Mint, Cardiff Metropolitan University, RWE Energy, Ledwood Mechanical Engineering and Pro Steel Engineering, have committed practical support for workers ranging from guaranteed interviews for anyone made redundant, to providing training and coaching.
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An £80 million support fund is being provided by UK Government through the cross-government Tata Steel / Port Talbot Transition Board to support workers and businesses affected by Tata Steel’s move to greener steelmaking.
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Since July the Secretary of State for Wales has announced three funds to support those affected by Tata Steel UK’s decarbonisation plans. They are
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The Supply Chain Transition Fund, which is being increased in today’s announcement, which will allow supply chain businesses dependant on Tata to turn to new markets.
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The Employment and Skills Fund, which is also being increased in today’s announcement, which will allow individuals affected to bid for funds to retrain and develop new skills.
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The Start Up, Resilience and Business Growth Fund, announced by the Secretary of State for Wales in November, which will allow individuals affected to bid for funds to set up new businesses and also allow local businesses to bid to expand their operations.
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Tata Steel announced proposals in September 2023 to invest £1.25 billion, including a UK Government grant worth up to £500 million, to enable greener steel production at Port Talbot.
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In September 2024 the new UK Government announced an improved deal with Tata Steel which would deliver improved redundancy terms and a skills package for employees who want to earn whilst they retrain.
