The Government has pledged £80 million to help Redcar and the steel workers who lost their jobs when the SSI plant closed.
The news came after thai firm which owned the steel work plant on Teesside, announced on Friday it was going into liquidation.
Business Secretary Sajid Javid said the money would help the employees who were the "innocent victims" in the company's collapse.
ITN News Scotland correspondent Debi Edward reports:
Hundreds of families in the North East are struggling to come to terms with the impending closure of the SSI steelworks plant in Redcar.
The government has decided to allow the steel plant at Redcar to fail. A tough decision to make and obviously an unpopular one.
China's economy is slowing, and the aftershocks are being felt as far afield as Redcar.