Targeted retention incentive payments for FE teachers

AboutWhat thisyou schemecan claim

Eligible further education (FE) teachers can claim a targeted retention incentive payment for teaching specific courses in the following subject areas:

• building and construction
• chemistry
• computing, including digital and and ICT
• early years
• engineering and manufacturing, including transport engineering and electronics
• maths
• physics

Check the full list of eligible of eligible FE courses courses to to see if you can claim a payment. We’ll update the eligibility criteria for the 2025 to 2026 academic year in spring 2025.

When to apply

You can apply from autumn in the 2025 to 2026 academic year.

You must be in the first 5 years of your your FE teaching teaching career to claim. This means it must be 5 years or less since you started your first role with theteaching responsibilities ofat aan teacherFE atprovider ain post-16England.

If onlyyou educationwere (employed as a teacher in FE) provider in England.

EligibilityEngland criteriain arethe subject2019 to change.2020 academic year or before, you’re not eligible to claim.

When

Use the table to find out when you can apply

for a targeted retention incentive payment.

Year you first taught in FE You	Academic canyear in which to apply
2021 fromto autumn2022	2024 and 2025
2022 forto the2023	2024 and 2025
2023 to 20262024	2024 academicand year.2025
2024 to 2025	2024 and 2025

The academic year runs from 1 September untilto 31 August. Applications open in the autumn of the year shown.

If you teach at an FE provider that has higher levels of disadvantage, you’ll receive a higher payment. This is based on the proportion of 16 to 19 students who attract disadvantage funding.

A List of eligible further education providers and payment values (MS Excel Spreadsheet, 34.8 KB) is available.

Who is eligible   eligible

You can apply for a payment if you:

• are employed withas thean responsibility of an FE teacher teacher in England
• are employed by an eligible eligible FE provider provider
• startedare in your first role5 withyears the responsibilities of ateaching teacherin at a post-16 only education (FE) provider in England during or after the 2021 to 2022 academic year
• spend at least half of your timetabled hours, on average, teaching eligible eligible FE courses courses at level 3 or below
• are timetabled to teach more than 2 and a half hours a week
• spend at least half of your timetabled hours teaching 1616- to 1919-year-olds study(study programmes, T Levels,levels or apprenticeshipsapprenticeships) toincluding 16people up to 19the yearage oldsof 25 with an EHCP
• are not currently subject to any formal performance measures as a result of continuous poor teaching standards
• are not currently subject to any disciplinary action

Timetabled teaching hours refer to the time you spend teaching lessons to students of all ages.

You must also meet one of the following criteria:

• have a teaching qualification
• are currently enrolled on and working towards a teaching qualification
• intend to enrol on a teaching qualification inwithin the next 12 months (if you’re applying for a targeted retention incentive for the first time)

If you only hold an assessor qualification, you are only eligible if either you:

• are enrolled on a teaching qualification
• intend to enrol on a teaching qualification in the next 12 months (if you’re applying for a targeted retention incentive for the first time)

We also expect you to have developed, enhanced and maintained your teaching competences and practices, or have plans to do so.

Eligible FE providers

An eligible FE provider in England must employ you as a teacher. Eligible providers are:

• statutory FE providers, such as:
  • FE colleges
  • sixth-form colleges
  • designated institutions
• 16- to 19-only academies and schools

Eligible roles

You must be employed directly by an eligible provider as a member of staff with teaching responsibilities, in a role such as:

• advanced practitioner
• practitioner
• instructor
• lecturer
• teacher
• trainer
• tutor

Breaks in teaching

You’re still eligible if you have some breaks in your normal employment such as:

• sickness
• maternity or paternity leave
• parental or adoption leave

If you submit a claim during breaks in teaching, answer the questions based on your usual working pattern during normal employment.

You should apply for payments as usual during any breaks in teaching, before the claim window closes each year.

When you are not eligible

You are not eligible to claim if you:

• are unable to show ongoing commitment to teach at an FE provider
• are employed as support staff or a non-teaching leader
• are employed by a private supplysupply-teaching teaching agency or a non-statutory non-statutory FE provider, even if an eligible provider is subcontracting your provider to deliver teaching on their behalf
• were employed withas thean responsibilities of an FE teacher teacher in England in or before the 20202019 to 20212020 academic year
• have already claimed a targeted retention incentive payment for the2024 2025 to 2026 academic year2025
• are receiving an an FE initial initial teacher education bursary for 20252024 to 20262025

Eligible FE providers

An eligible FE provider in England must directly employ you as a member of staff who holds the responsibilities of a teacher. Eligible providers are:

• statutory FE providers including:

  • FE colleges
  • sixth-form colleges
  • designated institutions

• 16 to 19 only academies and schools

If you teach at an FE provider with a higher proportion of disadvantaged students, you’ll receive a higher payment. This is based on the proportion of 16 to 19 students who attract disadvantage funding.

A  list of eligible further education providers and payment values (MS Excel Spreadsheet, 33.3 KB) is available.

Eligible FE coursescourses

We have included subjects that are:

• the same as those eligible for the the targeted retention incentive for secondary school teachers

• linked to critical skills priorities and currently have the highest unfilled teaching vacancy rates in the statutory statutory FE sector sector

Only Only selected early years courses are are eligible. We have listed these separately.

You must spend at least half of your hours, on average, teaching eligible eligible FE courses. courses.

Subject	Course
Building and construction	RecognisedQualifications qualifications approved for funding at level 3 and below in the the building and construction sector sector subject area
	T Level in building services engineering for construction
	T Level in on-site construction
	T Level in design, surveying and planning for construction
	level 2 or level 3 apprenticeships in the the construction and the built environment occupational route
Chemistry	A or AS level in chemistry
	GCSE in chemistry
	IBO level 3 level 3 SL and  and HL chemistry, chemistry, taught as part of a diploma or career related programme or as a standalone certificate
	IBO level level 1 / level 2 2 MYP chemistry chemistry
Computing	RecognisedQualifications qualifications approved for funding at level 3 and below in the the digitalDigital technology (practitioners) sector sector subject area
	RecognisedQualifications qualifications approved for funding at level 3 and below in the the digitalDigital technology for users sector sector subject area
	Recognised digital functional skills qualifications and essential digital skills qualifications
	T Level in digital support services
	T Level in digital business services
	T Level in digital production, design and development
	IBO level 3 level 3 SL and  and HL computer computer science, taught as part of a diploma or career related programme or as a standalone certificate
	level 2 or level 3 apprenticeships in the the digital occupational route
Engineering and manufacturing	RecognisedQualifications qualifications approved for funding at level 3 and below in the the engineering sector sector subject area
	RecognisedQualifications qualifications approved for funding at level 3 and below in the the manufacturing technologies sector sector subject area
	RecognisedQualifications qualifications approved for funding at level 3 and below in the the transportation operations and maintenance sector sector subject area
	T Level in design and development for engineering and manufacturing
	T Level in maintenance, installation and repair for engineering and manufacturing
	T Level in engineering, manufacturing, processing and control
	level 2 or level 3 apprenticeships in the the engineering and manufacturing occupational route
Maths	RecognisedQualifications qualifications approved for funding at level 3 and below in the the mathematics and statistics sector sector subject area
	GCSE in maths, functional skills qualifications and and other maths qualifications for for teaching to 1616- to 1919-year-olds year olds who meet the condition of funding
Physics	A or AS level in physics
	GCSE in physics
	IBO level level 1 / level 2 2 MYP physics physics
	IBO level level 3 in in SL and  and HL physics, physics, taught as part of a diploma or career related programme or as a standalone certificate

Eligible early years courses

The following early years apprenticeships and T Levels are eligible.

Course type	Course
Apprenticeship	early years practitioner (level 2) apprenticeship
	early years educator (level 3) apprenticeship
T Level	T Level in education and early years (specialism - early years educator) – this is only eligible when assessed in the early year foundation stage, and in an early years setting in England

The following early years qualifications are also eligible.

We have only included those early years qualifications:

• approved for funding at level 3 and below
• where providers can count the recipient in staffstaff:child to child ratios – we have taken all entries from the the early years qualifications list on 22on May14 2025October 2024

Knowledge only pathways for any of the early years qualifications listed are not eligible.

Awarding organisation	Course
BIIAB	level 2 diploma for the early years practitioner
City and Guilds	level 2 diploma for the early years practitioner (England)
	level 3 advanced technical extended diploma for the early years practitioner (early years educator)
	level 3 diploma for the early years practitioner (early years educator)
Crossfields Institute	level 3 diploma in holistic baby and child care (early years educator)
FutureQuals	level 3 diploma in early years education and childcare (early years educator)
Focus Awards	level 3 diploma for the children’s workforce (early years educator) (RQF)(RQF)
Innovative Awarding	level 2 diploma for the early years practitioner
	level 3 diploma in early learning and childcare (early years educator)
iCan Qualifications	level 2 diploma for the early years practitioner
	level 3 diploma in early learning and childcare (early years educator)
	level 3 diploma in children’s learning and development (early years educator)
NCFE CACHE	level 2 diploma for the early years practitioner
	level 3 diploma for the early years workforce (early years educator)
	level 3 diploma for working in the early years sector (early years educator)
	level 3 diploma in childcare and education (early years educator)
	level 3 diploma in early years Montessorieducation pedagogyand -care birth to 7 (early years educator)
	level 3 diploma in early years Montessori pedagogy –- birth to 7 (early years educator)
	level 3 technicaldiploma occupational entry in Montessoriholistic pedagogybaby –and birthchild tocare 7 (early years educator) (diploma)
	level 3 technicaldiploma occupationalin entryMontessori forpedagogy the– earlybirth yearsto workforce7 (early years educator) (diploma)
	technical level 3 diploma in childcare and education (early years educator)
	technical level 3 diploma in early years education and care (early years educator)
Pearson	BTEC level 2 diploma for early years practitioners
	BTEC level 2 technical occupational entry for early years practitioners (diploma)
	BTEC level 3 technical occupational entry for early years educator (diploma)
	level 2 technical diploma in children’s play, learning and development (early years practitioner)
	level 3 national diploma in children’s play, learning and development (early years educator)
	level 3 national extended diploma in children’s play, learning and development (early years educator)
	Edexcel level 3 diploma in children’s learning and development (early years educator)
Training Qualifications UK	level 2 diploma for the early years practitioner (RQF)(RQF)
	level 3 diploma for the children’s workforce (early years educator)
VTCT Skills(Skillsfirst)	level 2 diploma for the early years practitioner (RQF)(RQF)
	level 3 diploma for the children and young people’s workforce (early years educator)

Payments Payments

For the 2025 to 2026 academic year, the targeted retention incentive payment ranges from £2,000 to £6,000, depending on:

• the provider you are employed by
• the number of hours you are timetabled to teach

We make the payment in one lump sum each year.

Teachers on permanent contracts

ThisIf includesyou’re those employed on a permanent contract, or a fixed term contract covering the 20252024 to 20262025 academic year.year, and you teach:

Timetabled teaching hours	Payment
12 hours or more pera week	week, you’re eligible for £4,000 to £6,000
2.5 fewer than 12 hours tobut 12more than 2 and a half hours pera week	week, you’re eligible for £2,000 to £3,000

Teachers on variablevariable-hours hours contracts

If you’re employed on a variablevariable-hours hours or a short-term fixed contract, you must:

• have worked for one term before applying
• be timetabled to teach in the next term

over the current term are:

Timetabled If your teaching hours	Payment
12 hours or more pera week	week, you’re eligible for £4,000 to £6,000
2.5 fewer than 12 hours tobut 12more than 2 and a half hours pera week	week, you’re eligible for £2,000 to £3,000

These hours refer to timetabled teaching hours and not total working hours. If you’re unsure about the hours you teach, check with your employer.

Taxable income and National Insurance

We’ll pay pay National Insurance and basic rate Income Tax for for the payment on your behalf. If you are or become a higher-rate taxpayer, you’ll need to pay any Income Tax at the higher rate through PAYE.PAYE.

The payment is not part of your salary from your employer. You, your employer or the government will not make a contribution to your pension as part of this payment.

Your payment, along with the Income Tax and National Insurance contributions paid on your behalf, will all count towards your income. You should consider how this will affect any other benefits or tax credits.

Student loan deductions

If you have a student loan you’re currently paying off, a deduction will go towards repaying it. This is automatically taken from your payment.

Contact

For queries about targeted retention incentive payments, emailemail:
FE-targeted.retention-incentive@education.gov.uk.