WORKERS who will be laid off from an electronics plant this summer are being encouraged to set up their own businesses.

The LG. Philips factory in Durham is to close in July, with the loss of 761 jobs.

As revealed by The Northern Echo last month, a total of £785,000 - more than £1,000 per worker - has been pledged to help staff find new jobs.

The taskforce set up to carry this out aims to have 90 per cent of the workforce either in employment or full-time training by October.

The bulk of the cash - £500,000 - will come from the Learning and Skills Council (LSC) County Durham.

Yesterday, the LSC confirmed that much of this funding will be spent on self-employment workshops and training programmes to help staff find new work in other sectors.

Executive director Tom Crompton said: "The financial support we have pledged will be used to enhance the existing support available to individuals.

"It will include activities such as workshops for those who may consider self-employment as an option - a service that will source the right kind of training linked to the aspirations of the individuals and the funding of training to help people realise those aspirations."

The announcement follows an Easter meeting with Prime Minister Tony Blair.

Mr Blair said: "I am in full support of the efforts being made by the Learning and Skills Council and the other partners to help those workers facing redundancy.

"I am confident that this money, and other money which has been made available towards this cause, will be used in the best way possible to help rebuild the futures of these people."