Local media reported that Tata Steel UK has confirmed it will take advantage of the government's multi-million pound furlough retention bonus, meaning it could receive around GBP 2.7million from the British government. A spokesman told the FT “Our use of the furlough scheme allowed us to retain vital skills and experience within the company to not just keep the business going in these difficult times, but to prepare to serve our customers as they ramp up their operations too.”
The Job Retention Bonus pays out GBP 1,000 for each furloughed employee who returns to work and is paid the lower earnings limit of GBP 520 per month between the end of the furlough scheme in October and the end of January 2021.
Tata Steel furloughed around a third of its 8,000 UK employees at some stage during the pandemic
Meanwhile the steel company said it is still in talks with the UK government to obtain a support financial package. Tata Steel UK has asked the UK government for a GBP 500 million loan