Targeted retention incentive payments for FE teachers
Eligible further education (FE) teachers can apply for the second round of targeted retention incentive payments for FE teachers from autumn 2025.
Applies to England
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 it must be 5 years or less since you started your first role with the responsibilities of a teacher at a post-16 only education (FE) provider in England.
Eligibility criteria are subject to change.
When to apply
You can apply from autumn 2025 for the 2025 to 2026 academic year. The academic year runs from 1 September until 31 August.
You cannot backdate a claim. You can only claim for the current academic year during an application window.
Who is eligible
You can apply for a payment if you:
- are employed with the responsibility of an FE teacher in England
- are employed by an eligible FE provider
- started your first role with the responsibilities of a 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 hours teaching 16 to 19 study programmes, T Levels, or apprenticeships to 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
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 in the next 12 months (if you’re applying for a targeted retention incentive for the first time)
If you 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.
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 supply teaching agency or a non-statutory FE provider, even if an eligible provider is subcontracting your provider to deliver teaching on their behalf
- were employed with the responsibilities of an FE teacher in England in 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 is available.
Eligible FE courses
We have included subjects that are:
- the same as those eligible for 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 FE sector
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 | Recognised 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 | Recognised qualifications approved for funding at level 3 and below in the digital technology (practitioners) sector subject area |
| Recognised qualifications approved for funding at level 3 and below in the digital technology for users 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 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 | Recognised qualifications approved for funding at level 3 and below in the engineering sector subject area |
| Recognised qualifications approved for funding at level 3 and below in the manufacturing technologies sector subject area | |
| Recognised 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 | Recognised 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
We make the payment in one lump sum each year.
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 hours or more per week | £4,000 to £6,000 |
| 2.5 hours to 12 hours per week | £2,000 to £3,000 |
Teachers on variable hours contracts
If you’re employed on a variable hours or a short-term fixed contract, you must:
- have worked for one term before applying
- be timetabled to teach in the next term
| Timetabled teaching hours | Payment |
|---|---|
| 12 hours or more per week | £4,000 to £6,000 |
| 2.5 hours to 12 hours per week | £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 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.
Updates to this page
-
Updated to confirm that eligible further education (FE) teachers can apply for the second round of targeted retention incentive payments for FE teachers from autumn 2025.
-
Updated the page as applications for the 2024 to 2025 academic year have now closed.
-
Applications for the 2024 to 2025 academic year are now open. We have updated the page to reflect this. The updates include changes to how we present the lists of eligible courses.
-
Updated to clarify that eligible teachers can claim for the 2024 to 2025 academic year from 14 October 2024.
-
First published.