Tata Steel: Extra £22m in support announced for Port Talbot businesses and steelworkers
Tata Steel: Extra £22m in support announced for Port Talbot businesses and steelworkers
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The UK Government has announced an additional £22 million in funding to support workers and businesses affected by Tata Steel’s transition to greener steelmaking at Port Talbot, taking total community support to £122 million.
The funding uplift increases the UK Government’s contribution to the Tata Steel/Port Talbot Transition Board from £80 million to £102 million, alongside £20 million committed by Tata Steel.
The additional money could help support up to 1,000 more jobs in the local economy and extend access to support funds into 2026.
Since July 2024, the Transition Board has allocated the initial £80 million to support workers and businesses most affected by changes at the steelworks.
Funding has already helped deliver thousands of training courses for individuals and supported almost 200 businesses to start up, grow, invest in new equipment and enter new markets.
The rapid deployment of funding into the Port Talbot area has also helped stabilise the local economy during the transition, with the UK Government saying there has been no increase in unemployment benefit claims in the region as Tata Steel moves towards electric arc furnace steelmaking.
Read our exclusive interview with Tata Steel UK CEO, Rajesh Nair, here:
Tata Steel UK CEO: British steel consumption at its ‘lowest since the Industrial Revolution’
The newly announced £22 million, confirmed on Thursday (18 December), follows high demand for existing support and will allow further applications to the Supply Chain, Business Start-Up, Resilience and Growth Funds over the next two years.
Secretary of State for Wales Jo Stevens said: “This government has acted decisively to support workers and businesses in Port Talbot, allocating the entire £80 million in initial funding quickly into the community to ensure that whoever needed support could access it.
“Grants have been delivered swiftly to meet the needs of local people, businesses and communities and there is evidence that our approach is working.
“But we want to make sure that as many people as possible have continued access to support with the extra £22 million for local businesses into the new year.
“We said we would back workers and businesses affected by the transition at Port Talbot and are delivering on that promise.
“It remains a difficult time for Tata Steel workers, their families and the community, but we will continue to support them.”
Jo Stevens announced the increased funding during a visit to Port Talbot-based engineering firm JES Group, which has accessed Transition Board support.
She also visited the JES Academy, which is providing training for dozens of former and current steelworkers.
Justin Johnson, Director of JES Group and The Skills Academy, said: “I want to express our gratitude to the UK Government for establishing the original Transition Fund and for now having the foresight to increase the level of support at such a critical moment.
“This uplift will make a significant difference to supply-chain companies like ours.
“As Tata Steel transitions to electric arc furnace steelmaking, businesses like JES must transition alongside it, while also diversifying into new sectors to reduce our reliance on what was once our core work.
“We continue to believe that the history of steelmaking in Port Talbot is far from over and that a brighter, greener future lies ahead — but while that future takes shape, diversification is essential.
“The journey has not been easy, and it is far from over, but this additional support creates real opportunities for stability and growth.
“I also want to recognise Business Wales and, in particular, Neath Port Talbot Council’s Economic Development team for their guidance and practical assistance.”
The funding sits alongside a wider UK Government commitment of £2.5 billion to decarbonise the steel industry, including £500 million towards the new electric arc furnace currently under construction at Port Talbot.
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