Early Years Providers Business Planning and Support

Recruitment and Retention

£4,500 Tax-Free Incentive for Early Years Teachers

The Department for Education (DfE) has launched a £4,500 tax-free financial incentive to attract and retain qualified Early Years teachers in targeted disadvantaged communities across England. The initiative forms part of the Government's Best Start in Life Strategy, which aims to address workforce shortages and improve outcomes for young children through increased access to high-quality early education.

Eligible Areas

The incentive is targeted at communities experiencing some of the greatest recruitment challenges and highest levels of deprivation. The first phase of the programme includes the following local authorities:

  • Bolton
  • Middlesbrough
  • Sandwell
  • Tameside
  • Rochdale
  • Hartlepool
  • Rotherham
  • Dudley
  • Luton
  • Barking and Dagenham

The programme is expected to expand to additional areas in future phases.

Who Can Claim?

To be eligible for the incentive, practitioners must:

  • Hold a recognised graduate-level qualification, including:
    • Qualified Teacher Status (QTS)
    • Early Years Teacher Status (EYTS)
    • Early Years Professional Status (EYPS)
  • Be employed in an eligible nursery or early years setting located within one of the designated local authority areas.

How to claim

Applications processed through Department for Education (DfE) claims service Claim an early years teacher recognition payment – GOV.UK

Payments will be made within 16 weeks after submitting a successful claim.

The trial will end on 31 July 2026 at 5pm. No more claims will be reviewed after this date. Any eligible teacher who misses this window will be able to apply when the service reopens in November.

Do Something BIG campaign

“Do Something Big, work with small children" is a national recruitment campaign by the UK Department for Education that aims to inspire people to pursue rewarding careers in early education and childcare. It aims to showcase the profound positive impact that early years professionals can have on children’s lives—emphasizing how even small gestures can shape futures. 

Do Something Big - Childcare and early years recruitment campaign

Do something Big campaign toolkit

You can find a bank of assets which includes:

  • Videos
  • Social media graphics
  • Leaflets
  • Posters

Employing an early years apprentice in your settingEarly years alliance logo small

The Early Years Alliance offer advice and practical support for those employing apprentices.  
Employing an early years apprentice for your setting | early years alliance (eyalliance.org.uk)

Advertise apprenticeships

Applicants can search and apply for apprenticeships using the Find an apprenticeship service on GOV.UK. To advertise your apprenticeships on the site for free:

  1. Create or sign in to your apprenticeship service account. 
  2. Follow the guidance on creating an apprenticeship advert as an employer.

Further Information

Webpages for the early years workforce: recruitment, retention, and business planning.

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