Early Years Financial Incentives Evaluation. Final Report
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| Title: | Early Years Financial Incentives Evaluation. Final Report |
|---|---|
| Language: | English |
| Authors: | Department for Education (DfE) (United Kingdom), IFF Research, London Economics (LE) |
| Source: | UK Department for Education. 2025. |
| Availability: | UK Department for Education. Castle View House East Lane, Runcorn, Cheshire, WA7 2GJ, UK. Tel: +44-37-0000-2288; Fax: +44-19-2873-8248; Web site: http://www.education.gov.uk |
| Peer Reviewed: | N |
| Page Count: | 176 |
| Publication Date: | 2025 |
| Document Type: | Reports - Research |
| Descriptors: | Incentives, Financial Support, Child Caregivers, Recruitment, Job Applicants, Apprenticeships, Pilot Projects, Program Implementation, Supply and Demand, Labor Turnover, Employment Qualifications, Foreign Countries |
| Geographic Terms: | United Kingdom |
| ISBN: | 978-1-83870-720-0 |
| Abstract: | IFF Research and London Economics (LE) were commissioned to evaluate the Early Years Financial Incentive pilot which launched in April 2024. Providers were projected to need more staff as more children become eligible for funded childcare places from September 2025. The pilot tested the impact of a £1,000 golden hello provided to eligible staff starting new early years positions. Eligible staff received a £1,000 incentive, after tax and National Insurance deductions. The pilot compared experiences and issues of recruitment (and retention) in a matched treatment group of 20 Local Authorities (LAs) in which the incentive scheme operated, with experiences in 20 untreated control LAs. The primary aim of the pilot was to determine whether the use of Financial Incentives (FIs) increased the number of (eligible) recruits successfully employed in early years settings. This evaluation was designed to assess the extent to which this aim was achieved. The research questions were structured around two areas: process and impact. The beginning section of this report outlines the methodology used to structure the evaluation, covering planning, fieldwork and analysis. It includes contextual caveats to support interpretation of findings, as well as reporting conventions that explain how data has been analysed and presented. An initial summary of the characteristics of LAs participating in the pilot provides context, followed by an overview of pilot delivery using Department for Education monitoring data, including the number of incentives and funding allocated. The first chapter provides contextual information about the early years sector, examining demand and supply of early years places and staff, recruitment challenges and logistical issues encountered during the pilot. It also explores the role of financial incentives influencing staff supply and discusses motivations for working in early years, alongside recruitment and retention challenges. The next chapter considers engagement with the pilot and how it sits within the Extended Childcare Entitlement roll-out. Subsequent sections present views on the administration and processes of the pilot. A case study illustrates effective LA support, followed by findings on the pilot impacts, including the effects of the incentives, application quality, and recruitment outcomes. The report then examines effects on providers and broader benefits for participants and the early years sector. The second half of the report presents findings from the impact evaluation, including effects on vacancies, applications, data, recruitment, retention, staff numbers, childcare capacity, and any unintended consequences or spillover effects. The report concludes with a summary of key findings and suggestions from participants to inform future roll-out. |
| Abstractor: | ERIC |
| Entry Date: | 2026 |
| Accession Number: | ED679926 |
| Database: | ERIC |
| Abstract: | IFF Research and London Economics (LE) were commissioned to evaluate the Early Years Financial Incentive pilot which launched in April 2024. Providers were projected to need more staff as more children become eligible for funded childcare places from September 2025. The pilot tested the impact of a £1,000 golden hello provided to eligible staff starting new early years positions. Eligible staff received a £1,000 incentive, after tax and National Insurance deductions. The pilot compared experiences and issues of recruitment (and retention) in a matched treatment group of 20 Local Authorities (LAs) in which the incentive scheme operated, with experiences in 20 untreated control LAs. The primary aim of the pilot was to determine whether the use of Financial Incentives (FIs) increased the number of (eligible) recruits successfully employed in early years settings. This evaluation was designed to assess the extent to which this aim was achieved. The research questions were structured around two areas: process and impact. The beginning section of this report outlines the methodology used to structure the evaluation, covering planning, fieldwork and analysis. It includes contextual caveats to support interpretation of findings, as well as reporting conventions that explain how data has been analysed and presented. An initial summary of the characteristics of LAs participating in the pilot provides context, followed by an overview of pilot delivery using Department for Education monitoring data, including the number of incentives and funding allocated. The first chapter provides contextual information about the early years sector, examining demand and supply of early years places and staff, recruitment challenges and logistical issues encountered during the pilot. It also explores the role of financial incentives influencing staff supply and discusses motivations for working in early years, alongside recruitment and retention challenges. The next chapter considers engagement with the pilot and how it sits within the Extended Childcare Entitlement roll-out. Subsequent sections present views on the administration and processes of the pilot. A case study illustrates effective LA support, followed by findings on the pilot impacts, including the effects of the incentives, application quality, and recruitment outcomes. The report then examines effects on providers and broader benefits for participants and the early years sector. The second half of the report presents findings from the impact evaluation, including effects on vacancies, applications, data, recruitment, retention, staff numbers, childcare capacity, and any unintended consequences or spillover effects. The report concludes with a summary of key findings and suggestions from participants to inform future roll-out. |
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| ISBN: | 978-1-83870-720-0 |
