UK Steel: Joe Morris 07920 040510
For Immediate Release
Commenting on the Government’s Energy Security Strategy, UK Steel Director General Gareth Stace said:
“The help announced for industry in today’s Energy Security Strategy represents a major step forward for the UK steel sector and will provide some much-needed relief in the face of extremely challenging circumstances for steelmakers in the UK. While there remain challenges, this demonstrates that the steel industry and the UK Government are working in partnership to deliver a bright future for steelmakers and steel communities across the country.
“The three-year extension of the EII compensation scheme and the increase in the level of relief provided by it delivers on a long-standing industry ask and provides a much-needed reduction in electricity costs. This increase in compensation is something that has been a key priority for the steel sector; and is a key step to tackling the industrial electricity prices that hold the UK steel sector back from competing with our European counterparts. The promise to consider an increase in the level of relief on renewable levies is also hugely welcome and will reduce electricity costs further.
“We warmly welcomed the Prime Minister’s recent commitments to tackle the issue of industrial energy costs, and this is the start of translating these commitments into practical action. We will continue to work with Government on this and to continuing to address the needs of a strategic industry that provides us the sovereign capability to make our own steel to support our infrastructure requirements, our manufacturing sector and our national defence. We will continue to provide highly skilled and well-paid jobs across the UK while we work to decarbonise our industry and support the net-zero economy of the future.”
About UK Steel: UK Steel is the trade association for the UK steel industry. It represents all the country’s steelmakers and most downstream steel processors.
UK Steel Policy Priorities: A copy of UK Steel’s current policy priorities, as well as key facts and figures about the steel sector, can be found here: https://www.makeuk.org/insights/publications/uk-steel-laying-the-foundations-of-a-sustainable-steel-sector
UK steel in numbers:
- Produces 7 million tonnes of crude steel a year, around 70% of the UK’s annual requirement (annual demand of 10.2MT)
- Employs 33,700 people directly in the UK and supports a further 42,000 in supply chains
- The median steel sector salary is £34,299, 33% higher than the UK national median and 45% higher than the regional median in Wales, and Yorkshire & Humberside, where its jobs are concentrated
- Makes a £2.1 billion direct contribution to UK GDP and supports a further £2.7 billion
- Makes a £1.7 billion direct contribution to the UK’s balance of trade
- 96% of steel used in construction and infrastructure in the UK is recovered and recycled to be used again and again