New research explores the effectiveness of ECT retention incentives  

The National Foundation for Educational Research (NFER) has published a new blog discussing the findings of research into teacher retention incentives.  

Funded by the Nuffield Foundation, the research explores the effectiveness of five different government schemes. All of which have been designed to improve teacher retention through financial incentives for early career teachers (ECTs).    

What are the five retention incentives?

• Maths and Physics Retention Payment (MPRP) 
• Teacher Student Loan Reimbursement (TSLR) 
• Maths Phased Bursary (MPB) 
• Early Career Payment (ECP) 
• Levelling Up Premium (LUP) 

These schemes provided targeted payments to teachers in the early years of their careers, and often focused on school types or specific regions. 

The NFER’s evaluation offers new insight into how these policies are working and whether they represent good value for money.  

Key findings from the retention incentive research shows:

• Retention payments may help, but the evidence is mixed. While previous studies found stronger positive impacts, new analysis shows weaker and often not statistically significant improvements in teacher retention. 

• Inconclusive evidence of whether the LUP was effective. The LUP scheme was launched in 2022 with payments of up to £3,000 a year. It is associated with a modest reduction in leaving rates, but more data would be needed to draw firm conclusions. 

• Retention payments are less cost-effective than bursaries, but can still play a role. The analysis shows that bursaries deliver greater impact per pound compared to retention payments. However, once bursaries have reached their practical maximum, retention payments may be a useful addition lever.   

• No clear evidence that specific groups benefit more. There was no strong evidence that retention payments work better for certain types of teachers or schools. This implies that scheme design should focus on subject shortages and alignment with other policy objectives. 

Comments on the new research

Jack Worth, school workforce lead at NFER who authored the blog, said: “Our analysis suggests retention payments may play a useful role in keeping early career teachers in the classroom, especially, in shortage subjects – but the evidence is far from conclusive. 

“To get the best value, they need to be carefully targeted and used alongside high bursaries and wider recruitment and retention strategies.” 

Responding to the analysis, Ian Harwright, head of policy at NAHT, commented: “The longstanding teacher and leader supply crisis evidences a decade-long policy failure.  Retention payments, bursaries, early career payments and other policy initiatives have failed to deliver sufficient new entrants to the profession or act effectively to retain serving professionals.

“What is needed is more fundamental action to make teaching a sustainable and attractive long term professional career choice for graduates. That means further above-inflation pay increases over the Parliament to restore the value of salaries to 2010 levels after years of real-terms cuts, further support for flexible working, action to tackle unsustainable workload, and far-reaching reform of unreliable high-stakes Ofsted inspections which harm teacher and leader wellbeing.

“These measures could be complemented by more compelling financial incentives, like fully funding teacher training, waiving student loans, and long service awards – but such incentives should be the cherry on the cake, not its main ingredients.”

Read the full blog here.