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Guidance

Targeted retention incentive payments for FE teachers: academic year 2025 to 2026

Guidance for the second round of the targeted retention incentive for further education (FE) teachers, which closed on 31 May 2026.

Applies to England

Applications for the academic year 2025 to 2026 are now closed.

You can no longer claim for a payment.

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

Check the full list ofÌý±ð±ô¾±²µ¾±²ú±ô±ðÌýFEÌý³¦´Ç³Ü°ù²õ±ð²õÌýto see if you can claim a payment.

You must be in the first 5 years of yourÌýFEÌýteaching 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)Ìý±è°ù´Ç±¹¾±»å±ð°ù 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.

When to apply

Applications openÌýduring a set application window, with dates confirmed each academic year. You can no longer claim for the academic year 2025 to 2026 and you cannot backdate a claim.

Claims are verified by your employer and the Department for Education (DfE) from the start of the summer term. Eligibility is assessed at the point your employer reviews your claim.

Who is ±ð±ô¾±²µ¾±²ú±ô±ðÌýÌýÌý

You can apply for a payment if you:

  • are a member of staff with the responsibility of anÌýFEÌýteacher in England
  • are directly employed by an ±ð±ô¾±²µ¾±²ú±ô±ðÌýFEÌý±è°ù´Ç±¹¾±»å±ð°ù
  • 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 ±ð±ô¾±²µ¾±²ú±ô±ðÌýFEÌý³¦´Ç³Ü°ù²õ±ð²õ 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 on 16-to-19 study programmes, T Levels, 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 the whole spring academic term before applying
  • expect to continue to work at an ±ð±ô¾±²µ¾±²ú±ô±ðÌýFEÌý±è°ù´Ç±¹¾±»å±ð°ù until the end of the academic year

Timetabled teaching hours refer to the time you spend independently teaching lessons to classes of 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 statutory breaks in teaching, answer the questions based on your usual working pattern during normal employment.

You should apply for payments as usual during any statutory 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 work at anÌýeligible FEÌý±è°ù´Ç±¹¾±»å±ð°ù 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 as a contractor, or if you are subcontracting with an eligible FE provider
  • started a role with the responsibilities of anÌýFEÌýteacher 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 anÌýFEÌýinitial teacher education bursary for 2025 to 2026

·¡±ô¾±²µ¾±²ú±ô±ðÌýFEÌý±è°ù´Ç±¹¾±»å±ð°ùs

An ±ð±ô¾±²µ¾±²ú±ô±ðÌýFEÌý±è°ù´Ç±¹¾±»å±ð°ù in England must directly employ you as a member of staff who holds the responsibilities of an FE teacher. Eligible providers are:

  • including:

    • FEÌý³¦´Ç±ô±ô±ð²µ±ð²õ
    • sixth-form colleges
    • designated institutions
  • 16 to 19 only academies and schools

If you teach at anÌýFEÌý±è°ù´Ç±¹¾±»å±ð°ù 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 attractÌýdisadvantage funding.

´¡Ìý (MS Excel Spreadsheet, 36.9 KB) is available.

·¡±ô¾±²µ¾±²ú±ô±ðÌýFEÌý³¦´Ç³Ü°ù²õ±ð²õ

You must spend at least half of your timetabled hours, on average, teaching ±ð±ô¾±²µ¾±²ú±ô±ðÌýFEÌý³¦´Ç³Ü°ù²õ±ð²õ. This includes qualifications approved for funding by DfE, T Levels or apprenticeships.

A qualification must be approved for funding by DfE to be eligible. It must also be specifically named or approved for funding by DfE at level 3 or below within one of the 7 eligible sector subject areas. All maths qualifications that meet the condition of funding are also eligible.

°¿²Ô±ô²âÌýselected early years coursesÌýare 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 by DfE at level 3 and below in theÌýÌýsector subject area
Ìý T Level in building services engineering for construction
Ìý T Level in on-site construction
Ìý T Level in design, surveying and planning for construction
Ìý level 2 or level 3 apprenticeships in theÌý
Chemistry A or AS level in chemistry
Ìý GCSE in chemistry
Ìý IBOÌýlevel 3ÌýSLÌýandÌýHLÌýchemistry, taught as part of a diploma or career related programme or as a standalone certificate
Ìý IBOÌýlevel 1 / level 2ÌýMYPÌýchemistry
Computing Qualifications approved for funding by DfE at level 3 and below in theÌýÌýsector subject area
Ìý Qualifications approved for funding by DfE at level 3 and below in theÌýÌýsector subject area
Ìý Digital functional skills qualifications and essential digital skills qualifications
Ìý T Level in digital support services
Ìý T Level in digital business services
Ìý T Level in digital production, design and development
Ìý IBOÌýlevel 3ÌýSLÌýandÌýHLÌýcomputer science, taught as part of a diploma or career related programme or as a standalone certificate
Ìý level 2 or level 3 apprenticeships in theÌý
Engineering and manufacturing Qualifications approved for funding by DfE at level 3 and below in theÌýÌýsector subject area
Ìý Qualifications approved for funding by DfE at level 3 and below in theÌýÌýsector subject area
Ìý Qualifications approved for funding by DfE at level 3 and below in theÌýÌýsector subject area
Ìý T Level in design and development for engineering and manufacturing
Ìý T Level in maintenance, installation and repair for engineering and manufacturing
Ìý T Level in engineering, manufacturing, processing and control
Ìý level 2 or level 3 apprenticeships in theÌý
Maths Qualifications approved for funding by DfE at level 3 and below in theÌýÌýsector subject area
Ìý GCSE in maths, functional skills qualifications andÌýÌýfor teaching to 16 to 19 year olds who meet the condition of funding
Physics A or AS level in physics
Ìý GCSE in physics
Ìý IBOÌýlevel 1 / level 2ÌýMYPÌýphysics
Ìý IBOÌýlevel 3 inÌýSLÌýandÌýHLÌýphysics, 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
Ìý 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 years 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 by DfE at level 3 and below
  • where providers can count the recipient in staff to child ratios – we have taken all entries from theÌýearly years qualifications list on 2 March 2026.

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 (603/5227/9)
City & Guilds level 2 diploma for the early years practitioner (England) (603/4935/9)
Ìý level 3 diploma for the early years practitioner (early years educator) (601/3118/4)
Crossfields Institute level 3 diploma in holistic baby and child care (early years educator) (603/7739/2)
FutureQuals level 3 diploma in early years education and childcare (early years educator) (601/3816/6)
Focus Awards level 3 diploma for the children’s workforce (early years educator) (RFQ) (601/8715/3)
Innovative Awarding level 2 diploma for the early years practitioner (603/4814/8)
Ìý level 3 diploma in early learning and childcare (early years educator) (601/3890/7)
iCan Qualifications level 2 diploma for the early years practitioner (603/5193/7)
Ìý level 3 diploma for the early years educator (603/5943/2)
Ìý level 3 diploma in children’s learning and development (early years educator) (RQF) (601/7898/X)
NCFE CACHE level 2 diploma for the early years practitioner (603/3723/0)
Ìý level 2 technical occupational entry for the early years practitioner (diploma) (610/4587/1)
Ìý level 2 extended technical occupational entry for the early years practitioner (diploma) (610/4588/3)
Ìý level 3 diploma for the early years workforce (early years educator) (601/2629/2)
Ìý level 3 diploma for working in the early years sector (early years educator) (610/4164/6)
Ìý level 3 diploma in childcare and education (early years educator) (601/4000/8)
Ìý level 3 diploma in early years Montessori pedagogy - birth to seven (early years educator) (610/4159/2)
Ìý level 3 diploma in Montessori pedagogy – birth to seven (early years educator) (601/4573/0)
Ìý level 3 technical occupational entry in Montessori pedagogy – birth to seven (early years educator) (diploma) (610/3983/4)
Ìý level 3 technical occupational entry for the early years workforce (early years educator) (diploma) (610/3984/6)
Ìý technical level 3 diploma in childcare and education (early years educator) (601/8437/1)
Ìý technical level 3 diploma in early years education and care (early years educator) (601/8438/3)
Pearson BTEC level 2 diploma for early years practitioners (603/4999/2)
Ìý BTEC level 2 technical occupational entry for early years practitioners (diploma) (610/4251/1)
Ìý BTEC level 3 technical occupational entry for early years educator (diploma) (610/3956/1)
Ìý level 2 technical diploma in children’s play, learning and development (early years practitioner) (603/0509/5)
Ìý level 3 national diploma in children’s play, learning and development (early years educator) (601/7571/0)
Ìý level 3 national extended diploma in children’s play, learning and development (early years educator) (601/7572/2)
Ìý level 3 diploma in children’s learning and development (early years educator) (601/2963/3)
Training Qualifications UK level 2 diploma for the early years practitioner (RQF) (603/5096/9)
Ìý level 3 diploma for the children’s workforce (early years educator) (RQF) (601/7670/2)
VTCT Skills level 2 diploma for the early years practitioner (RQF) (603/5179/2)
Ìý level 3 diploma for the children and young people’s workforce (early years educator) (601/8151/5)

PaymentsÌý

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

We make the payment in one lump sum.

If you receive a payment from a claim and you are later found to be ineligible, we will take steps to recover the payment.

Timetabled teaching hours refers to the time you spend independently teaching lessons to classes of 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 payÌýNational Insurance and basic rate Income TaxÌýfor 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

Published 4 September 2024
Last updated 1 June 2026 Show all updates
  1. Updated to show the second round of the targeted retention incentive for further education teachers closed on 31 May 2026.

  2. Updated to state that applications to claim a targeted retention incentive payment have reopened.

  3. 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.

  4. 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.

  5. Updated the page as applications for the 2024 to 2025 academic year have now closed.

  6. 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.

  7. Updated to clarify that eligible teachers can claim for the 2024 to 2025 academic year from 14 October 2024.

  8. First published.

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