The Liberal Democrats say they have highlighted several problems with the transition deal struck with Tata Steel.
At a parliamentary debate earlier today (30 April) the Lib Dems claimed that since the news that British Steel in Scunthorpe was to be nationalised, Labour have consistently defended its position not to do the same in Port Talbot by arguing they were able to secure an improved redundancy and training package for the almost 3,000 people being made redundant.
David Chadwick, the Lib Dem MP for Brecon, Radnor and Cwm Tawe put to the Wales Office minister, Jo Stevens that since the announcement of the deal last summer with Tata numerous problems have been reported by those facing redundancy.
These include employees with 40+ years of service, who are currently on job share contracts, have had their redundancy figures based on their part-time contract. Those who have asked to return to full-time roles have been refused.
Mr Chadwick went on to claim that employees were not being provided clear finishing dates, meaning they can’t secure new employment, or if they want to start new employment imminently, they need to forfeit the voluntary redundancy package.
He said that many staff left the site without receiving payouts, saving the company millions of pounds in order to start in new jobs instead of being left in limbo waiting for a finish date.
In February 2025, whistleblowers reported to Nation.Cymru, that just three ex-employees had accessed the Employment and Skills Flexible Fund retraining scheme. One major problem cited was that if an employee stays in the retraining scheme longer than a month, they will not receive the full enhanced 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.
Mr Chadwick said that when questioned, Tata did not deny only three people had accessed the retraining scheme.
The Lib Dems said that Jo Stevens was not able to answer the specific questions asked by David Chadwick.
The UK government has previously said it could claw back its investment should Tata renege on the deal.
Commenting, Welsh Liberal Democrat Westminster Spokesperson David Chadwick said: “Since this Labour Government announced it was acting to save jobs in Scunthorpe, but not Port Talbot, Labour has repeatedly claimed this is because they secured a good deal for workers losing their jobs at Tata, yet conversations I’ve had with workers since directly contradict this claim.
“With those workers having served over 25 years, not having that service recognised and only a handful of people accessing retraining courses due to the threat of receiving a worse redundancy package, this does not sound like a good deal.
“The way workers and the wider community in Port Talbot have been treated by this new Labour Government and the previous Conservative Government has been disgraceful.
“The Welsh Liberal Democrats will continue to highlight their failures and fight for immediate investments to replace the jobs that have been lost as a result of this mismanagement.”
The UK Government has told Swansea Bay News in response that it “acted decisively” to ensure “steelmaking would continue in Port Talbot” and have “done so again to protect the industry in Scunthorpe”.
However it added that “the circumstances between the two cases are very different”.
A UK Government spokesperson said: “The agreement with Tata Steel to build an electric arc furnace and Tata’s decision to shut down the blast furnaces and coke ovens in Port Talbot were all made in 2024 under the previous government.
“In just a few weeks we negotiated an improved deal with Tata which preserved 5,000 jobs, ensured there would be no immediate compulsory redundancies, confirmed a £500m grant for future steelmaking in Port Talbot and secured investment opportunities for the local area.
“We also offered support for every single worker and supply chain business via our £80m Port Talbot Transition Board. More than £50m has already been announced, much of it on retraining and reskilling of workers, and the rest will follow in the coming months.
“In contrast, Jingye, British Steel’s owner in Scunthorpe, rejected our offer of financial support meaning we had to legislate to ensure the continued safe operation of the blast furnaces.
“Our ongoing support for British steelmaking ensures that steel communities like Port Talbot and Scunthorpe have a bright future.”
