Targeted retention incentive payments for FE teachers
Eligible further education (FE) teachers can apply for the second round of targeted retention incentive payments from 2 March 2026 until 31 May 2026.
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 you must have started your first role with the responsibilities of an FE teacher at a post-16 only education (FE) provider in 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
The academic year runs from 1 September until 31 August. For the 2025 to 2026 academic year, applications will open on 2 March 2026.
You must claim by 31 May 2026.
You cannot backdate a claim. You can only claim for the current academic year during an application window.
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 a 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 an 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 hours, on average, teaching students funded through the 16 to 19 education funding system or apprentices aged 16 to 19
- are not subject to any formal performance measures as a result of continuous poor teaching standards
- are not 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 within the next 12 months (if you’re applying for a targeted retention incentive for the first time, or if you’re reapplying and have a valid reason for not having enrolled or obtained a teaching qualification since your previous application)
You still need to meet the above teaching qualification criteria if you only hold an assessor 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 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 not expecting to continue to be employed by an eligible FE provider until the end of the academic year
- are non-teaching support staff, a non-teaching assessor or a non-teaching leader
- are employed through a subsidiary, by an agency, or if you are subcontracting with an eligible FE provider
- started a role with the responsibilities of an FE teacher in England at 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 is available.
Eligible FE courses
You must spend at least half of your timetabled hours, on average, teaching eligible FE courses. This includes qualifications approved for DfE funding, T Levels or apprenticeships.
A qualification must be approved for funding under at least one of the DfE funding offers to be eligible. It must also be specifically named or approved for DfE funding at level 3 or below within one of the seven eligible sector subject areas. All maths qualifications that meet the condition of funding are also eligible.
Only selected early years courses are eligible. We have listed these separately.
Speak to your employer if you’re unsure if your teaching fits one of these categories.
| Subject | Course |
|---|---|
| Building and construction | 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 | Qualifications approved for funding at level 3 and below in the digital technology (practitioners) sector subject area |
| Qualifications approved for funding at level 3 and below in the digital technology for users sector subject area | |
| 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 | Qualifications approved for funding at level 3 and below in the engineering sector subject area |
| Qualifications approved for funding at level 3 and below in the manufacturing technologies sector subject area | |
| 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 | 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
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.
Timetabled teaching hours refers to the time you spend independently teaching lessons to students of all ages. It is not your total working hours or contact time.
| Timetabled teaching hours (on average per week) | Payment |
|---|---|
| 12 hours or more | £4,000 to £6,000 |
| 2.5 hours or more, but fewer than 12 hours | £2,000 to £3,000 |
Check with your employer if you’re unsure about the hours you 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.
Updates to this page
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Updated to add application window dates for the targeted retention incentive in academic year 2025 to 2026. Updated list of eligible further education providers and payment values.
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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.
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Updated the page as applications for the 2024 to 2025 academic year have now closed.
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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.
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Updated to clarify that eligible teachers can claim for the 2024 to 2025 academic year from 14 October 2024.
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First published.