Katherine MLA Jo Hersey has called on the NT Government to urgently review the axing of the scheme as a Budget saving measure from last year.

Ms Hersey, who is the CLP's education spokeswoman, told NT Parliament yesterday there are strong concerns regarding teacher recruitment and retention in Katherine.

"We would like an urgent review of the changes to the housing subsidy to attract teachers and make a difference to retaining staff in the region," she said.

"The housing subsidy was at a cost of $500,000 which is a drop in the ocean compared to the $8.4 billion of debt we are in."

The NT Government said it was working to correct "an anomaly" which provided for rental subsidies for about a third of the about 300 education staff in Katherine.

The subsidy was originally provided to Katherine in recognition the town's schools were the hardest to recruit new teaching staff to in the Territory.

The decision caused a lot of upset among teachers with the Education Department doubling relocation allowances for 2020 to try and soften the blow.

The NT Government has been asked to respond to Ms Hersey's call.

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