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1. Introduction

The ECTE normally requires 2 years of participation by early career teachers (ECTs). Year 1 and year 2 refer respectively to the first year and second year of induction for an ECT. Grant funding is linked to the ECT and paid to the setting who has registered the ECT as undergoing their ECTE training at that setting in the second year of induction.

Year 1 funding (usually academic year 2025 to 2026)

Funding to support ECTs in year 1 of their induction, to cover the cost of 10% off timetable, should come from core funding or equivalent (for example, dedicated schools grant (DSG), general annual grant, 16 to 19 funding, or place funding). For schools who receive their core funding through the DSG, we calculate this using the national funding formula (NFF). This funding is primarily based on pupil numbers and characteristics and is allocated by the local authority.

Year 2 funding (usually academic year 2026 to 2027)

Year 2 funding is covered by ECTE year 2 time off timetable and mentor support grant funding paid in arrears. Settings will get one payment after the end of the ECT’s second academic year unless the ECT is following a non-standard training schedule.

Year 2 grant funding covers the cost of each ECT’s:

• 5% time off timetable and

• 20 hours of mentor support

Funding will be paid in 1 instalment, in arrears to eligible settings. Settings do not need to make an application for this funding (see section 3 Payments.)

1.1 Legislation

The ECTE year 2 time off timetable and mentor support grant will be paid by the Secretary of State for Education as a grant under section 14 of the Education Act 2002. In accordance with section 16 of that Act, the Secretary of State attaches the following terms to the grant payable.

1.2 Purpose

The ECTE year 2 time off timetable and mentor support grant is for the purpose of funding settings to cover:

(1) ECT time off timetable to undertake their training and receive mentoring during the second year of ECTE, and (2) time off timetable for the ECT’s mentor to provide support during the second year of ECTE

1.3 Period

These conditions of grant cover the academic year 2025 to 2026 and 2026 to 2027 (cohort 2025)

2. Eligibility for grant funded ECTE year 2 time off timetable and mentor support

2.1 Eligible settings

The following settings are eligible to receive funding provided they meet the criteria as set out at 2.2

Local authorities –this includes local authority maintained

• mainstream schools
• special schools
• nursery schools
• pupil referral units

Academies – this includes

• mainstream academies and free schools
• alternative provision academies
• studio schools
• university technical colleges
• city technology colleges
• 16 to 19 academies

Other settings:

• non-maintained special schools (NMSS)
• specialist post 16 Institutions (SPI)
• independent special schools (ISS) that receive Section 41 funding
• FE colleges

2.2 Criteria

Eligible early career teachers (ECTs)

Settings will be eligible for DfE funding if they employ an ECTÌý·É³ó´Ç:

• works in one of the settings listed above and,
• holds qualified teacher status (QTS) and,
• is registered as being in their second year of their induction after 1 September 2021

Teachers who are exempt from statutory induction (see Annex A of the induction statutory guidance for details) may not undertake statutory induction so are ineligible for this funding.

2.3 ±á´Ç·ÉÌýDfE checks the eligibility of ECTs

For ECTs who commence training from academic year 2025 onwards, all settings are required to register their ECT(s) on DfE’sÌý to receive the funding.

The setting must register their ECT with an appropriate body. The appropriate body for the ECT will also have to register the induction. As part of the registration process DfE will validate the ECT details provided against existing records across its services.

3. Payments

Settings do not need to make an application for this funding. We will collect evidence through DfE’s and the induction periods recorded by the ECT’s appropriate body with the DfE where required. This approach is to minimise the administrative burden on settings.

3.1 Calculation

The funding amount for mentors is calculated based on the U1 band and for ECTs on the M1 band according to this most recent pay band adjustment:

The rounded totals are calculated as:

• salary amount divided by 1,265 multiplied by 20 hours and rounded to nearest 100
• 1,265 is the number of directed teaching hours

Rate for ECTs and mentors will differ by region as set out in the table below:

Year 2 funding	England (excluding the London area)	Inner London area	Outer London area	Fringe area
Rounded cost per ECT	£1,100	£1,300	£1,300	£1,100
Rounded cost per mentor	£700	£900	£800	£700
Total	£1,800	£2,200	£2,100	£1,800

Eligible settings will receive funding in arrears to cover the cost of giving each ECT in year 2 of induction:

• 5% off timetable for induction activities including ECTE based training and mentor sessions
• a dedicated mentor, based on 20 hours of mentoring in year 2 of induction

DfEÌý³¾²¹°ì±ð²õÌýECTE year 2 time off timetable and mentor support payments directly to settings, or to local authorities to pay maintained schools. One payment is made which is inclusive of both the ECT funding and the 20 mentor hours and is paid in full after the academic year if the eligibility criteria is met.

3.2 Non-standard induction funding

For ECTs who are part-time or start after September, funding may be paid partly in arrears and in advance after the end of the academic year if the eligibility criteria is met. Funding can be used to support ECTs beyond the academic year to help them complete their induction. It’s up to each setting to decide how the funding is managed.

3.3 ECT who moves school in year 2

If an ECT moves to another setting during the second year of their ECTE, funding will be allocated to the setting where the ECT moves to where possible. It’s the responsibility of the ECT’s new setting to discuss and agree with the previous setting how funding is shared.

3.4 ECT who defers in year 2

If an ECT commenced their second year of induction and served at least 1 full term and then subsequently defers training, full payment will be made. Payment should be treated as part in arrears and part in advance for the remaining 2 terms of training. If the ECT resumes employment within an alternative setting the new setting should discuss and agree with the previous setting how funding is shared.

3.5 Extensions to the standard induction period

¹ó´Ç°ùÌýECTs who serve extensions and, therefore, require additional terms of induction after the standard induction period, no further grant funding is available. If eligible, access to funded training via lead providers continues until the ECT has completed their induction.

3.6 Payment timetable

The table below provides an illustration of a standard training period payment timetable

ECT begins training in academic year of	Training completed at the end of the academic year of	Grant funding paid
2025 to 2026	2026 to 2027	autumn 2027

Any payment corrections identified after the autumn payment will be included in the following year’s autumn payment.   

3.7 Payment schedule

The payment for ECTE year 2 time off timetable and mentor support will be paid after the academic year if the eligibility criteria is met.

Payments will be made to local authorities for maintained schools and directly to academies and other settings. Any corrective payments will be made in accordance with the payment schedule.

Academic year	Local authorities for maintained schools, and other settings	Academies
2025 to 2026	End of November 2027	Start of December 2027

3.8 School closures, openings and academy conversions

This funding is paid in arrears. Where a setting has closed since the ECT has started, the successor organisation will receive the funding. Where there is no successor, and it is a maintained school, we will pass the funds to the local authority.

3.9 Additional local authority duty

For local authority-maintained schools, the funding must be made available by the local authority to the school irrespective of the existence of any deficit relating to the expenditure of the school’s budget share. The funding is not part of schools’ budget shares and is not part of the individual school’s budget. It is not to be counted for the purpose of calculating the minimum funding guarantee.

4. Permitted use of funding

Funding must only be spent on supporting ECTs to complete the ECTE year 2 time off timetable and mentor support such as, but not limited to:

• time off timetable for induction activities, including ECTE based training and mentor sessions
• paying for someone to take over lessons while an ECT is training
• paying for someone to teach if a mentor takes time off to mentor the ECT
• paying for any costs that come from reducing an ECT or mentor’s other responsibilities

5. Assurance

5.1 Carry forward

As this funding is paid in arrears for costs previously incurred, this funding should not be carried forward past 31 March 2027.

5.2 Records required

We have a responsibility to make sure that public funds are properly managed in line with these grant conditions. As payment will be made in arrears, we reserve the right to ask schools to confirm that the money has been or will be spent in the way intended. Acceptance of the funding will be taken as confirmation.

Settings are required to maintain and keep clear records of income and expenditure in relation to this grant including evidence of the use of funds.

Record of this expenditure such as

• a receipt for classroom cover, or
• evidence of time made available for the ECT’s and mentor(s) involved

but we will not mandate what form this record should take, and trust school leaders to use their judgement.

We reserve the right to conduct post payment light-touch proportionate assurance such as compliance audits with individual schools, asking for sight of such records.

6. Further information

Books, other documents and records relating to the recipient’s accounts shall be open to inspection by the Secretary of State and by the Comptroller and Auditor General.

The Comptroller and Auditor General may, under section 6 of the National Audit Act 1983, carry out examinations into the economy, efficiency and effectiveness with which the recipient has used its resources.

Local authorities and settings shall provide information as may be required by the Secretary of State to determine whether they have complied with these conditions.

7. Variation

The basis for allocation of grant may be varied by the Secretary of State from that set out above, if so requested by the local authority or setting.

8. Recovery of funding

If a local authority or setting fails to comply with the terms and conditions set out in this document, the Secretary of State may recover some or all of the ECTE grant that has been allocated. This will be notified in writing to the local authority or setting.

Recoveries will be made by invoice or by offsetting the amount against subsequent payments due from the department. The recipient must notify DfE immediately through the   if it becomes aware of any instance of error, suspected fraud or financial irregularity in the use of the funds.

9. Overpayments

If a setting or local authority identifies that it has been overpaid, it must contact DfE to arrange repayment of the excess. Where DfE identifies an overpayment, it may seek to recover the excess. The local authority or setting will be notified of this in writing.

10. Enquiries

For queries relating to these terms and conditions please contact continuing-professional-development@digital.education.gov.uk