How does the UK’s HGV industry operate?
According to trade association RHA, road haulage contributes around £13 billion to the United Kingdom’s GDP. Road haulage falls under the wider transport and logistics industry, which accounts for 5.6% of the GDP and close to two million jobs. In 2023, some 271,800 people were employed as HGV drivers in the UK. This was down 5% from 2022, though demand remains high, and exemplifies the current employment shortfall. On a day-to-day basis, HGV drivers form the backbone of the supply chain, linking producers to retailers and consumers. These lorries move goods from production points like factories, farms and warehouses to distribution centres, retailers, construction sites or even directly to consumers in the case of delivery services. Drivers also handle returns, delivering unsold or defective goods back to warehouses and manufacturers. Some specialised HGVs may provide other types of services such as rubbish collection transporting refuge, recycling or environmental waste, tankers that supply fuel to petrol stations or CIT vehicles that transport cash and valuables.
How the lorry driver shortage can affect businesses
A HGV driver shortage can create significant disruption to the supply chain and affect multiple industries, even those that do not directly receive or distribute goods via road haulage. Additionally, interruptions in the flow of essentials like food, petrol and medical supplies can rapidly impact the general public, causing stress and anxiety for consumers. With more than 80% of goods in the UK transported primarily by road, and the remaining moved by air, ship or rail still often requiring road transport at various stages, the effects of a driver shortage can be far-reaching. Here are some ways in which the UK HGV driver shortage might impact your business:
- Delivery delays: This can disrupt production schedules when essential supplies are delayed or lead to customer dissatisfaction when orders take longer than promised to arrive.
- Increased costs: If your business handles its own freight, you may need to increase wages to attract and retain HGV drivers. If you rely on external logistics companies, critical delays could force you to turn to costly alternatives like courier services.
- Negative publicity: When consumers are impacted by supply chain constrictions, their frustrations often lead to bad reviews of businesses or may be picked up by the media, resulting in unfavourable coverage that can harm your reputation and undo the hard work you have put into building your brand.
- Loss of revenue: The driver shortage could lead to bottlenecks in the supply chain, affecting your ability to restock in time and meet customer demands. This can impact sales or even cause you to lose customers if they turn to competitors to meet their needs.
Related: Lorry driver job description: top duties and qualifications
Where are we now?
According to data from the Office for National Statistics, there are currently close to 272,000 HGV drivers in active employment in the UK. The lorry driver shortage was at its most acute during the Covid-19 pandemic, and the year-on-year drop in active drivers has levelled off since 2023, but there is still cause for concern. According to the RHA, the average age of lorry drivers is 51, with 55% of drivers aged between 50 and 65, meaning that many drivers will be retiring within the next ten years, many possibly sooner than that due to the demanding nature of the job and the physical and mental health problems it can cause. If the industry is unable to attract and retain new drivers, fresh waves of staffing shortages could cause havoc in the future. The RHA estimates that the UK needs approximately 100,000 additional lorry drivers to address the current shortage and prevent future shortfalls.
Related: How to provide employees with mental health time off work
How did we get here?
The cause of the current HGV driver shortage is complex and may be linked to multiple factors. Below, we explore several possible reasons for the issue.
1. Drivers leaving the industry
According to data from the UK government, the primary reason for driver vacancies was retirement. Drivers also left for different industries or for better pay, benefits and working conditions.
2. Remuneration and the cost-of-living crisis
Rapid inflation is a global problem in 2024, exacerbated by geopolitical factors like Russia’s invasion of Ukraine. The inability of many industries to increase wages and salaries to meet inflation has led to a cost-of-living crisis in many countries, including the United Kingdom. The HGV industry is no exception. The average salary for a £15.96/hour – almost 40% above the national minimum wage – but the job is demanding, with long hours and stressful situations such as traffic, roadworks, detours and driving hazards. Low wages can hinder recruitment and affect employee retention.
3. Desirability of the role
Difficulty in attracting new drivers, particularly younger ones, is another key cause of the lorry driver shortage. Long hours spent on the road, with drivers often far from home, even when off duty and physical demands can make the lifestyle of an HGV driver less desirable to some. Additionally, the role is not typically very highly regarded – the UK government classifies it as an ‘unskilled job’ – making it less aspirational as a career choice.
4. Additional factors: Covid-19 and Brexit
Although the impact of these events was most acute from 2020-2022, the ripple effects on the industry may still be felt. During the Covid-19 crisis, the demand for consumer goods, particularly those that could be delivered directly to a customer’s home, skyrocketed, requiring a greater number of drivers on the roads. At the same time, there was a significant backlog in driving tests and any licence-related administration, as the DVLA operated on minimum staff. The National Office of Statistics found that the number of driving tests in 2020 was the lowest in over a decade. Additionally, many older drivers opted for early retirement at this time due to health concerns related to the virus. When Britain officially left the EU at the beginning of 2020, drivers from EU countries automatically lost the right to come to the UK to live and work. It is estimated that around 20,000 lorry drivers who are EU nationals have left the UK since Brexit.
What can be done?
The future of employing lorry drivers does not need to be as bleak as the picture painted by the current recruitment and retention crisis – there are plenty of potential solutions that could be implemented. Below are a few ideas that industry experts have proposed.
- Increasing pay and benefits packages. Higher earning potential and better benefits are often one of the fastest ways to attract new talent to any sector. However, the industry may need to consider the potential impacts of increasing wages on businesses and consumers.
- Investing in training. Skills bootcamps are a government initiative to attract more lorry drivers to the profession by offering several months of specialised training and required licencing tests free of charge. Additionally, private companies could prioritise upskilling to help current employees advance their careers, which may also make the profession more appealing to new talent.
- Reforming the rail network. The new Labour government has proposed plans to renationalise the UK’s railways. Increased investment in restoring and expanding the rail network could reduce the number of lorry journeys needed by shifting more freight to rail. This could also help the country meet its environmental targets.
- Autonomous/self-driving lorries. Although the industry is still in its infancy, self-driving vehicles could eventually transform the UK’s roads, significantly reducing both the number of HGV drivers needed and the long hours currently required in the profession.
The UK’s road haulage industry faces a complex and ongoing driver shortage that requires innovative solutions to meet the challenges. Looking to the future, addressing low wages, improving working conditions, investing in training and the rail network and utilising technology could all help to mitigate the crisis. Without intervention, the supply chain risks further disruption, with a domino effect on businesses and consumers alike.
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