Targeted retention incentive payments for FE teachers

About this scheme

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 ICT
• early years
• engineering and manufacturing, including transport engineering and electronics
• maths
• physics

Check the full list of eligible FE courses to see if you can claim a payment.

You must be in the first 5 years of your FE teaching career to claim. This means ityou must behave 5 years or less since you started your first role with the responsibilities of aan FE teacher at a post-16 only education (FE) provider in England.England during or after the 2021 to 2022 academic year.

If you started your FE teaching career in England during the 2020 to 2021 academic year or before, you are not eligible to claim.

Eligibility criteria are subject to change.

When to apply

YouThe canacademic applyyear runs from autumn1 2025September foruntil 31 August. For the 2025 to 2026 academic year.year, Theapplications academicwill yearopen runson from2 1March September2026.

You untilmust claim by 31 August.May 2026.

Your claim will be verified by your employer and DfE from the start of the summer term on 13 April 2026. Eligibility is assessed at the point your employer reviews your claim.

Who is eligible   

You can apply for a payment if you:

• are employeda member of staff with the responsibility of an FE teacher in England
• are directly employed by an eligible FE provider
• started your first role with the responsibilities of aan FE teacher 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 FE 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 hourshours, on average, teaching students funded through the 16 to 19 studyeducation programmes,funding Tsystem Levels, or apprenticeshipsapprentices toaged 16 to 19 year olds
• 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
• are on a permanent contract
• are on a fixed term contract covering the 2025 to 2026 academic year
• are on a variable-hours contract or a short-term fixed contract, and have worked at least the whole spring academic term before applying
• expect to continue to be employed by an eligible FE provider until the end of the academic year

Timetabled teaching hours refer to the time you spend independently 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)

Iftime, youor holdif anyou’re assessorreapplying qualification,and youhave area onlyvalid eligiblereason iffor eithernot you:

• arehaving enrolled onor obtained a teaching qualification
• intend tosince enrolyour onprevious aapplication)

You teachingstill qualificationneed into meet the nextabove 12teaching monthsqualification (ifcriteria you’reif applyingyou foronly ahold targetedan retentionassessor incentive for the first time) qualification.

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

Breaks in teaching

You’re still eligible if you have some statutory breaks in your normal employmentemployment, 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 unablenot expecting to showcontinue ongoing commitment to teachbe atemployed anby an eligible FE provider provideruntil the end of the academic year
• are employednon-teaching as support staffstaff, a non-teaching assessor or a non-teaching leader
• are employed bythrough a privatesubsidiary, supplyby teachingan agencyagency, or a non-statutory FE provider, even if anyou eligibleare provider is subcontracting yourwith provideran toeligible deliverFE teaching on their behalfprovider
• werestarted employeda role with the responsibilities of an FE teacher in England inat any post-16 education provider during or before the 2020 to 2021 academic year
• have already claimed a targeted retention incentive payment for the 2025 to 2026 academic year
• are receiving an FE initial teacher education bursary for 2025 to 2026

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, 33.334.5 KB) is available.

Eligible FE courses

WeYou havemust includedspend subjectsat thatleast are:half of your timetabled hours, on average, teaching eligible FE courses. This includes qualifications approved for DfE funding, T Levels or apprenticeships.

• the

  A samequalification asmust thosebe eligibleapproved for the targetedfunding retentionunder incentiveat forleast secondaryone schoolof teachers

• linkedthe DfE funding offers to criticalbe skillseligible. prioritiesIt andmust currentlyalso havebe specifically named or approved for DfE funding at level 3 or below within one of the highestseven unfilledeligible teachingsector vacancysubject ratesareas. inAll maths qualifications that meet the statutory FE sector

condition of funding are also eligible.

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

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

Speak to your employer if you’re unsure if your teaching fits one of these categories.

Subject	Course
Building and construction	RecognisedQualifications qualifications approved for funding at level 3 and below in the building and construction 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 construction and the built environment occupational route
Chemistry	A or AS level in chemistry
	GCSE in chemistry
	IBO level 3 SL and HL chemistry, taught as part of a diploma or career related programme or as a standalone certificate
	IBO level 1 / level 2 MYP chemistry
Computing	RecognisedQualifications qualifications approved for funding at level 3 and below in the digital technology (practitioners) sector subject area
	RecognisedQualifications qualifications approved for funding at level 3 and below in the digital technology for users sector subject area
	RecognisedDigital 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 SL and HL 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 digital occupational route
Engineering and manufacturing	RecognisedQualifications qualifications approved for funding at level 3 and below in the engineering sector subject area
	RecognisedQualifications qualifications approved for funding at level 3 and below in the manufacturing technologies sector subject area
	RecognisedQualifications qualifications approved for funding at level 3 and below in the transportation operations and maintenance 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 engineering and manufacturing occupational route
Maths	RecognisedQualifications qualifications approved for funding at level 3 and below in the mathematics and statistics sector subject area
	GCSE in maths, functional skills qualifications and other maths qualifications for teaching to 16 to 19 year olds who meet the condition of funding
Physics	A or AS level in physics
	GCSE in physics
	IBO level 1 / level 2 MYP physics
	IBO level 3 in SL and HL 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 staff to child ratios – we have taken all entries from the early years qualifications list on 22 May 2025

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 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)
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 Montessori pedagogy - birth to 7 (early years educator)
	level 3 diploma in Montessori pedagogy – birth to 7 (early years educator)
	level 3 technical occupational entry in Montessori pedagogy – birth to 7 (early years educator) (diploma)
	level 3 technical occupational entry for the early years workforce (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)
	level 3 diploma in children’s learning and development (early years educator)
Training Qualifications UK	level 2 diploma for the early years practitioner (RQF)
	level 3 diploma for the children’s workforce (early years educator)
VTCT Skills	level 2 diploma for the early years practitioner (RQF)
	level 3 diploma for the children and young people’s workforce (early years educator)

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 in the spring academic term

We make the payment in one lump sum each year.sum.

Teachers on permanent contracts

This includes those employed on a permanent contract, or a fixed term contract covering the 2025 to 2026 academic year.

Timetabled teaching hours	Payment
12 hoursrefers or more per week	£4,000 to £6,000
2.5the hourstime toyou 12spend hoursindependently perteaching week	£2,000lessons to £3,000

Teachersstudents onof variableall hoursages. contracts

IfIt you’reis employednot onyour atotal variableworking hours or acontact short-term fixed contract, you must:time.

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

Timetabled teaching hours (on average per week)	Payment
	12 hours or more per week	£4,000 to £6,000
	2.5 hours toor 12more, hoursbut perfewer weekthan 12 hours	£2,000 to £3,000

TheseCheck hourswith referyour toemployer timetabledif teaching hours and not total working hours. If you’re unsure about the hours you teach, check with your employer.teach.

Taxable income and National Insurance

We’ll pay National Insurance and basic rate Income Tax 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.

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, email
FE-targeted.retention-incentive@education.gov.uk.