Those working in schools "in special measures" would receive higher salaries, as would those working in other areas where recruitment is difficult - such as secondary maths teachers and primary headteachers.

In his submission to the teachers' pay review body, the Education Secretary, David Blunkett, also calls on the review body to recommend an overall pay award for next year which is affordable and allows the government to award it in full rather than phasing it in.

The government has phased this year's 3.8% teachers' pay award, holding back 1.8% until December.

Mr Blunkett said: "I believe that it is essential that the review body's recommendations for 1999-2000 address the need for the pay structure to be more effective in helping schools in special measures to recruit, retain, and reward high quality teachers.

David Blunkett: "It is important that new arrangements should reward teachers doing a good job in difficult schools"

"Ensuring that a failing school has high quality staff is essential to its recovery.

"In addition, I have asked the review body to consider the scope for targeted pay incentives to help recruit teachers in shortage subject areas.

"Significant recruitment and retention problems already exist in particular parts of the teaching profession - in particular head teachers and deputies in primary schools, and primary teachers in London."

Mr Blunkett says his future Green Paper on teachers' pay will look at ways of rewarding the best teachers with a possible link between pay and pupil performance.

But teachers' unions are sceptical about his proposals.

The General Secretary of the National Association of Schoolmasters/Union of Women Teachers, Nigel de Gruchy, said "golden hellos" and extra pay for teachers in shortage subjects were regularly recommended and examined as possible solutions.

"Every time they've been examined, they've been rejected because of the disruptive effect they have on teacher morale," he said.

"If you tell people they'll get more money if they come and teach maths, how do you think that makes people feel who are already doing the job, and won't get the extra money?"

The General Secretary of the National Union of Teachers, Doug McAvoy, said the incentives for teachers in shortage subjects would not work.

"We will wait for the Green Paper when we will have a proper review of how we make teaching an attractive career."