The government is doubling its support for workers and businesses affected by job losses at a giant Tata steel plant.

An extra £15m will be made available for supply chain businesses and workers affected by changes at Tata’s Port Talbot site in south Wales.

Jo Stevens, the Welsh secretary, said businesses across Wales that are reliant on Tata steel will now benefit from a total of £30m.

More businesses will now also be able to apply for the funds, while the value of individual grants will rise to up to £250,000 for investment in equipment, property and technology.

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Up to 2,800 jobs at Tata Steel are expected to be axed at the country’s biggest steelworks in Port Talbot as the company moves over to a greener form of steel production which requires fewer workers.

The package is designed to support businesses that rely on Tata Steel as their main customer, while the money will also be used to help workers who have been made redundant by giving them access to training and qualifications in sectors where there are job vacancies.

The government said there has been “significant demand” on the existing funding, with almost 40 businesses in the application process.

Grants worth millions of pounds are expected to be released in the new year.

Ms Stevens said: “This government is acting decisively to support workers and businesses in Port Talbot.

“We are doubling the funding available to businesses and workers and widening access to grants to ensure we support as many people as possible.

“In just four months we have announced more than £40 million in investment. We said we would back workers and businesses affected by the transition at Port Talbot and we are doing exactly that.

“While this remains a very difficult time for Tata workers, their families and the community, we are determined to support workers and businesses in our Welsh steel industry, whatever happens.”

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Earlier this year, Tata confirmed it would press ahead with plans to close blast furnaces and replace them with electric arc furnaces under its plan to reduce emissions and costs.

It said the move will cut carbon emissions by about 85% and the UK’s overall CO2 output by about 1.5%. The Port Talbot site is the UK’s single largest emitter of CO2.

The new furnace will make steel by using UK-sourced scrap metal as its raw material. The iron ore that the furnaces currently use needs to be imported.