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£377m spent saving blast furnaces months after Port Talbot closure

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Government intervention keeps UK’s last primary steelmaking furnaces running

THE UK GOVERNMENT spent £377 million to prevent the closure of the country’s last remaining blast furnaces at British Steel’s Scunthorpe plant, according to a new report.

The emergency intervention came less than a year after the shutdown of the final coal-fired blast furnace at Port Talbot, which ended more than a century of primary steelmaking at the UK’s largest steelworks.

A report by the National Audit Office (NAO) said the Department for Business and Trade (DBT) stepped in quickly in 2025 to keep the Scunthorpe furnaces operating, warning that their closure would have led to thousands of job losses and major disruption to critical UK supply chains.

The £377 million spent between April 2025 and January 2026 has been classified as a loan, but the NAO warned that total costs could exceed £1.5 billion by 2028 if current spending levels continue.

Operating the furnaces is currently costing around £1.3 million a day, the report said, with no fixed budget, repayment schedule or clear end date for the government support.

British Steel’s owner Jingye had been in talks with the Government between 2022 and 2025 about switching the plant to electric arc furnaces, but no agreement was reached.

In March 2025 the company said it was losing around £700,000 a day due to difficult market conditions, tariffs and environmental costs and warned that it was considering closing the blast furnaces.

The Government feared the closure would leave the UK without the ability to produce virgin steel from raw materials — a capability considered strategically important for defence, infrastructure and rail manufacturing.

Electric arc furnaces, which melt scrap steel using electricity rather than iron ore and coal, are seen as the future of the industry because they produce far fewer carbon emissions. However, they cannot fully replace blast furnaces for certain specialist steel products.

The closure of Port Talbot’s blast furnaces last year marked the end of traditional steelmaking in Wales and triggered widespread concern about the long-term future of the UK steel industry.

At its peak, the Port Talbot plant employed thousands of workers and was capable of producing around five million tonnes of steel a year.

Job losses: Tata in Port Talbot

Trade unions and industry groups warned that without intervention at Scunthorpe, Britain risked becoming the only G7 nation unable to produce primary steel.

The NAO said the Government’s decision to intervene reflected the “strategic importance” of maintaining domestic steelmaking capacity, but warned that long-term plans for the sector remain uncertain.

Industry figures and unions reacted quickly to the report, warning that the future of UK steel remains uncertain.

Gareth Davies, head of the National Audit Office, said the Government had acted quickly to prevent serious economic damage.

He said the intervention avoided heavy job losses and disruption to major UK infrastructure and construction projects but warned that the high cost of keeping the furnaces running created “significant uncertainty” about how long support could continue.

Trade unions also backed the decision to intervene.

Alasdair McDiarmid of the steelworkers’ union Community said allowing the plant to close would have had devastating consequences.

He said the Government had taken the right decision to act, warning that local economies would have been “decimated” and that Britain would have lost its ability to produce steel from raw materials.

The intervention has also reignited political debate in Wales, where critics have questioned why similar emergency action was not taken sooner to save the blast furnaces at Port Talbot.

The shutdown of the Welsh plant resulted in around 2,800 direct job losses, with thousands more roles across the wider supply chain affected.

Opposition politicians and industry figures have argued that the contrast between the Government’s approach to Scunthorpe and the earlier closure in South Wales highlights the lack of a clear long-term strategy for the UK steel industry.

Ministers say a wider steel strategy is now being developed to balance the transition to greener electric arc furnace technology with the need to maintain domestic steelmaking capacity.

 

Crime

Two men bailed after Fleming Crescent burglary report

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TWO men have been arrested following a reported burglary at a property in Haverfordwest.

Dyfed-Powys Police confirmed that officers were called after a residential burglary was reported at Fleming Crescent on Sunday (Apr 26).

The incident is understood to have taken place sometime between 8:35pm and 11:55pm.

Residents reported seeing police tape and several police vehicles in the area at around 9:49pm.

A police spokesperson confirmed that two men, aged 25 and 28, both from Pembrokeshire, were arrested on suspicion of burglary.

Both men have since been released on bail.

 

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Education

Manifesto warns Welsh nurseries are ‘fighting to survive’

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Nurseries in Wales are warning that rising costs and underfunded childcare places are putting providers under severe pressure

NDNA CYMRU has launched its manifesto, The Best Start for Children in Wales, calling on the next Welsh Government to make early childhood play, learning and care a priority for every family and community.

The organisation says early findings from its nursery survey show 89% of day nurseries in Wales make a loss on sessional places, while 79% say the full day rate does not cover their costs.

Staffing bills have risen by an average of 10.5%, while nurseries have increased fees to parents by an average of 7.5%, meaning many providers are absorbing part of the extra cost themselves.

One nursery told NDNA: “We can’t increase prices as parents are struggling to pay their bill already.”

NDNA Cymru says the pressure is forcing some nurseries to spend less on resources, reduce staff hours and cut training, with one respondent saying they had been forced to lay off three members of staff.

The manifesto sets out four priorities for the next Welsh Government. These include a national review of funded childcare, funding rates that reflect the real cost of delivery, proper support for Additional Learning Needs, protection for existing providers before new capital projects are approved, and a fully funded workforce strategy.

Tim McLachlan, Chief Executive of NDNA Cymru said: “The next Welsh Government has the opportunity to do things better. We are calling on all parties to put children at the heart of any future policy, making sure it is properly funded and delivered consistently in communities across Wales.

“Our survey of day nurseries shows that they face unique funding pressures. It cannot be good for children, families or the economy to have nurseries fighting just to survive when we want to see them thrive.

“Parents rightly want more support to make childcare more affordable. But to be fair to everyone and make sure that policies can be delivered, political parties must make sure any promise they make is fully funded.”

NDNA Cymru said 92% of nurseries responding to its survey were either operating at a loss or only breaking even.

The survey also found that the new £6.67 hourly funding rate for three and four-year-olds does not cover costs for many providers. For full day care, the average shortfall was £1.56 per hour per child, rising to £2.05 for sessional care.

One nursery said: “In the 39 years I have been operating successfully and at a very high level of quality, this is the most challenging and disheartening time for my business in relation to financial sustainability.”

Another said: “Funding and fees are a constant worry alongside staff recruitment and retention; childcare is a lot more challenging and increases each year make it harder and harder.”

NDNA Cymru said it wants a fair and consistent childcare system across Wales, backed by national guidance, proper investment in staff, and adequate ALN funding so children’s needs can be met.

 

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News

Ceredigion WASPI women call on election candidates to back compensation fight

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CEREDIGION WASPI campaigners have written to local election candidates urging them to publicly back calls for compensation for women affected by changes to the State Pension age.

The group says 6,900 women in Ceredigion could be affected, with compensation worth up to £2,950 each under recommendations made by the Parliamentary and Health Service Ombudsman.

That would amount to a potential total of £20,355,000 across the county.

WASPI, which stands for Women Against State Pension Inequality, represents women born in the 1950s who were affected by changes to the State Pension age.

The campaign accepts the equalisation of pension ages, but argues that many women were not properly informed of the changes and were left with little time to make alternative retirement plans.

In a letter to candidates, Ceredigion WASPI campaigners ask “one simple question”: whether they will stand with local women in their fight for fair compensation.

The letter says: “This decision has caused enormous anger and disappointment to the 6,900 women in Ceredigion who have spent years campaigning for justice.

“With crucial elections approaching this May, voters in our communities will be looking closely at where their candidate stands on this issue.”

The group is asking candidates to publicly support compensation, write to their local MP calling on the Government to think again, and, if elected as councillors, table a council motion backing the campaign.

The calls come after lawyers representing WASPI wrote to Government lawyers earlier this month alleging “multiple legal errors” in the Department for Work and Pensions’ stance on compensation.

Campaigners say the move could lead to a second judicial review.

In spring 2024, the Parliamentary and Health Service Ombudsman found the Department for Work and Pensions guilty of maladministration over how changes to women’s State Pension age were communicated.

WASPI says some of the worst-affected women were given just 12 months’ notice of a six-year increase to their retirement age.

Angela Madden, chair of the WASPI campaign, said: “The upcoming May elections are a critical moment for WASPI women across the country.

“Women in Ceredigion, like WASPI women everywhere, simply want to know that their elected representatives will fight for them.

“The Government should act urgently to end this historic injustice. For many of us, time is running out.”

WASPI was founded in 2015 and continues to campaign for women born between April 6, 1950 and April 5, 1960 who were affected by the changes.

 

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