The HGV driver shortage has been an issue for many a year but in autumn 2021 it reached a critical point. As a result, the UK economy was; and is still suffering the consequences of the shortfall, as a result Class 1 & 2 drivers are more in demand than ever before.
2021 was a trying year for all, with many people returning from furlough, adjusting to new hybrid home working set ups and starting new careers post covid-induced redundancies. However, there were extra obstacles at play when it came to the transport industry as it was already suffering with a driver shortage long before the pandemic and this was only exacerbated by the pandemic induced disruption.
The Coronavirus pandemic caused all HGV driving tests to cease which further exacerbated the issue and had a major impact on new drivers being able to enter the workforce. In order to combat this the government since increased HGV driver test capacity by 90% compared with pre-pandemic levels in a bid to reduce the shortfall of drivers. However, with the average age of lorry drivers currently at 55 and roughly 150,000 drivers nearing retirement, the testing capacity increase will only boost driver levels in the short-term, meaning the shortage is far from over.
What solutions have been introduced?
There is no quick fix, and as a result there is no single solution. A wide array of short-term and long-term solutions. Have been in play since 2021 here are just a few that have been implemented:
Visas – In 2021 the government offered 5,000 visas to HGV drivers delivering fuel and food supplies, however as 12,500 HGV drivers from the EU have left UK driving roles since 2020 this is a short-term fix. If this solution is to work in the long-term, the government will need to increase the number of visas alongside other incentives to entice overseas drivers or fill the shortfall with UK nationals by other means.
Government subsidies and training incentives – The government have invested: £34 million in HGV driver bootcamps; offering fully funded training to those looking to up-skill or re-train to become a HGV driver and introduced £7,000 funding for those commencing a large goods vehicle driver apprenticeship, as well as offering employers a £3,000 incentive to take on an apprentice. However this scheme ended on 31st January 2022, and has not since been extended.
Improved wages and incentive schemes – Transport companies have taken it upon themselves to increase wages and better working conditions to entice drivers to work for them (and not the competition). This is tempting drivers back that once left because of irregular work patterns and poor work-life balance and maintaining the ones already in employment.
Cabotage rule changes – The Government temporarily allowed unlimited cabotage movements of heavy goods vehicles for up to 14 days after arriving on a laden international journey into the UK. (Normally EU operators only are allowed to carry out 2 cabotage journeys within 7 days of entry to the UK.) The uptake of this was smaller than anticipated however did combat some of the shortfall. However, the relaxation of cabotage rules recently ended without further extension.
IR35 disruption – Despite a lot of self-employed HGV drivers leaving the industry as a result of changes to IR35 in April 2021, some companies have managed to embrace these changes and maintained drivers on a self-employed basis by modifying the self-employment contracts. Ensuring their self-employed drivers are conforming to the changes in UK law by utilising their own vehicles, maintain their own operator’s licence and invoicing from a UK limited company. These companies have reported success on increasing the number of drivers on their books but more encouragement is needed to facilitate this solution on a wider level.
Roadside facilities investments – More of a long-term solution than a quick fix but the government have pledged £32.5 million to provide more and better roadside facilities for HGV drivers, such as showers, toilets and eating areas. This is hoped to decrease the number of.
Overall the transport industry is still suffering. The companies that have embraced changes over the last year have suffered the least and those who have improved pay and working conditions overall are maintaining and attracting the available workforce. There is still much that needs to be done to fully stabilise the situation, however this is a problem that was in existence long before Brexit and the pandemic so on a whole the problem is no worse than before.
