Steel and other energy intensive industries will get refunds for energy policy costs once the European Union makes a decision on state aid, David Cameron has said.
Thousands of job cuts have been announced in recent weeks by Tata Steel and SSI in Redcar, Scunthorpe and Scotland, with cheap imports and high energy and emissions costs being blamed.
As workers lobbied MPs in Parliament for help, the Prime Minister said that once Brussels decides whether to give the Government approval to support the industry, steelworks will have energy costs refunded immediately and until 2020.
During Prime Minister's questions, Mr Cameron told MPs: "On energy costs, I can announce today that we will refund the energy intensive industries for the full amount of the policy cost they face as soon as we get the state aid judgment from Brussels.
"And I can confirm that payment will be made immediately and that payment will be made throughout this Parliament - far more generous than what has been proposed by Labour."
Business Secretary Sajid Javid is lobbying EU officials for Europe-wide action to tackle the crisis in the steel industry.
But the GMB union has derided Mr Javid has addressing the crisis with "spin and PR stunts".
A No 10 spokesman said: "We are confident we can get agreement. It's difficult to set a timescale but obviously as soon as possible.
"But what we are very clear on is, once we get that sign-off on state aid, the impact will be immediate, we will bring in the compensation and refunding of those energy costs immediately."
Labour leader Jeremy Corbyn will head to Scunthorpe tomorrow to meet steelworkers, the party said.
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