The United Kingdom is presently suffering from a chronic shortage of HGV (heavy goods vehicle) drivers, which has hurt all sectors of the economy. As a result, both basic and luxury goods are scarce.
According to a survey conducted by the Road Haulage Association, there is a shortage of over 100,000 qualified heavy-duty truck drivers. Furthermore, before the worldwide COVID-19 pandemic began, the UK was already suffering from a shortage of 60,000 drivers.
Explaining the shortage of HGV drivers
The shortage of heavy vehicle drivers in the United Kingdom has been a contentious issue lately. The UK’s exit from the EU at the start of 2021 and the impact of the COVID-19 epidemic are two major issues responsible.
Some European drivers returned to their native nations before and during the pandemic, but because of new immigration rules implemented as a result of Brexit, some of these drivers were unable to return to the United Kingdom. Due to tough working conditions, minimal pay, long hours of labor, tax adjustments, and truck driving being so strictly controlled, some people declined to return.
Another reason for HGV driver centre shortage according to official statistics is that only 600 of the roughly 14,000 HGV drivers who left the United Kingdom in 2020 had returned by July 2021. According to the Department for Transport, 16,022 practical HGV driving tests were completed in the United Kingdom in 2020/21, whereas 41,434 were done in 2019/20.
According to figures from the Office for National Statistics (ONS), there were 300,000 people employed in the United Kingdom who listed HGV driving as their primary job in 2019/20. That was just before the United Kingdom left the European Union on January 30, 2020. In total, 16% of these HGV drivers were from non-UK countries or the European Union (EU).
Furthermore, due to increased red tape, such as the extra paperwork needed to travel back and forth between countries, truck driving in the UK is no longer a preferred career for new EU drivers. Furthermore, the number of potential HGV drivers who were unable to pass the truck driving test to obtain their license increased considerably during the height of the epidemic.
The price of obtaining an HGV driver’s license varies, but it is usually between £250 and £300. It omits the cost of training an HGV, which can range from £1,000 to £2,000 based on the hours.
The price of living and working in the United Kingdom has gone up, which has harmed the income of HGV drivers. When HGV drivers are delayed at borders, they miss out on pay. They are compensated for the distance they travel and not the time worked.
Demand for lorries has also increased due to an increase in internet shopping during the pandemic, pushing up the demand for drivers to make deliveries. It has put the country’s and the globe’s supply chains on edge.
Consequences of HGV driver shortage
The truck driver shortage is having a ripple effect on every sector of the UK economy, as increasing supply chain costs are forcing up costs throughout the supply chain. Scarcity of materials and delays in delivery have disrupted manufacturing and production, causing growth to be slower and costs to go up.
The average cost of same-day delivery has risen by 30% over the last year, and goods in storage awaiting collection have necessitated additional storage room owing to delays in hauler availability.
The Bank of England’s quarterly Financial Stability Report revealed that transportation delays had caused shortages of certain items such as furniture, automobile parts, and electrical goods. the study revealed an extreme scarcity of building materials such as cement and timber.
Additionally, organizations and haulers warned that they are no longer able to guarantee every pickup and delivery. So, some businesses are offering significant pay incentives to HGV drivers.
Solutions to solve the HGV driver shortage
Lower visa requirements
The haulage and transportation industry has called on the UK government to lower visa hurdles for EU HGV drivers. The UK trade organization Logistics UK, which is one of the country’s major associations, is pleading for 10,000 seasonal work permits for HGV truck drivers from the government.
In response to the worsening scenario, the UK government has issued a directive allowing thousands of visas to be given to foreign workers. The applications for these visas opened at the beginning of October 1, 2021.
Issue of temporary visas
The British government has issued 5,000 temporary work visas to European HGV drivers to come and work between October and December 2021. All qualified drivers with valid licenses and experience in the transportation industry could apply. Many were expected to come from the European Union.
Increase in work hours for HGV drivers
To address the HGV driver scarcity problem, the UK government temporarily loosened restrictions on truck drivers’ hours. It implied that drivers who work more than nine hours per day can now work for 12 hours every other week.
Hiring new HGV drivers
In addition, the government encouraged the hiring of new drivers and urged the trucking and logistics business to enhance compensation and labor standards.
Promoting apprenticeships
To address the truck driver scarcity, on July 1, 2021, the Road Haulages Association (RHA) boosted its apprenticeship funding to £7,000. Many transportation businesses offer HGV drivers larger salaries, bonuses, and improved working conditions to reduce the driver shortage.
The truck driver shortage in the UK has had a major impact on various sectors of the economy. The effects have been felt in every sector, with increased transport costs and shortages in manufacturing materials having a significant effect on production and growth.
