Claims only three Tata Steel workers have applied for much-heralded retraining scheme

Martin Shipton

Just three workers made redundant from Tata Steel UK’s plant in Port Talbot have applied to take part in a re-training scheme whose introduction was seen as a crucial part of a deal with the UK Government, we have been told.

In 2023 Tata announced it would be closing the site’s two blast furnaces, replacing them with an electric arc furnace.

Statement

A statement from the UK Tory government at the time said: “The arc furnace will cost £1.25bn. The UK Government will pay £500m and Tata will pay the rest. The arc furnace proposal will secure 5,000 of the 8,000 jobs at risk across Tata Steel UK and many thousands more in the supply chain, while ensuring that steel continues to be made in Wales into the future.

“Additionally, £100m has been put towards the creation of a Transition Board, chaired by the Secretary of State for Wales and including representatives from the Welsh Government, local authorities and industry, which is directly supporting those affected. Some £80m of this is from the UK Government and £20m from Tata.

“This deal has saved thousands of steel jobs in Port Talbot, South Wales and across the UK and thousands more in the wider supply chain.

“It has saved the south Wales steel industry by converting to electric arc steelmaking, giving it a competitive and green future.

“It offers a sustainable future, not only for South Wales but also for the wider supply chain industries. The alternative was the whole plant closing and all jobs lost.

“Tata Steel UK was losing an enormous amount of money – hundreds of millions of pounds a year – and the whole operation was at risk of closure with a loss of over 8,000 jobs without UK Government support.

“However, we all recognise this is a devastating blow for the community of Port Talbot and we are committed to doing everything we possibly can to save jobs and support anyone who loses their job. This is why the UK Government has set up the Port Talbot Transition Board, backed by £80m from the UK Government and £20m from Tata.”

The deal was, in essence, confirmed after Labour won the general election in July 2024.

Retraining scheme

Much was made by both successive UK governments of the retraining scheme, but it has now emerged that very few former Tata employees have signed up for it.

A source told us: “Many of the workers have decided to take early retirement and aren’t seeking work. Others have managed to secure other jobs by themselves. The number applying for the retraining scheme is three.”

We asked Tata whether it was the case that just three ex-employees had applied for the scheme.

A Tata Steel spokesperson responded: “As part of our £20m commitment to the Transition Board fund, Tata Steel is offering employees in Port Talbot who have been placed on notice of compulsory redundancy as a result of the operational asset changes on the site, the opportunity to join a re-training scheme for up to 12 months to support their transition to find new employment outside the company. The employee has the choice to remove themselves from the scheme within the first month and still receive their full enhanced redundancy payment. At any time after that, until the end of the training scheme, they would still receive the company’s standard redundancy payment.”

The enhanced redundancy package comprises 2.8 weeks’ pay for every year of service up to 25 years’ service.It also includes a minimum payment of £15,000 plus a possible £5,000 ex gratia payment dependant on attendance.

The standard redundancy package comprises 2.1 weeks’ pay for every year of service.

‘Positive’

The spokesperson continued: “While take-up of the re-training scheme has been quite low, we consider this to be a positive reflection of our enhanced redundancy package, the outplacement support offered, and the accreditation of a prior learning scheme that allows experienced employees to gain qualifications for their existing skills.”

We pressed the spokesperson to confirm whether just three former employees had applied for the re-training scheme.

The spokesperson responded: “I’m not sure it’s a figure we would confirm or deny.

It may be more than that by now, but not substantially, I’d guess.”