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How serious is the shortage of HGV drivers? How serious is the shortage of lorry drivers?
(14 days later)
Lorry drivers are being allowed to spend a bit more time on the road over the next few months as the government tries to respond to industry warnings of a crisis in the supply chain. Several companies have complained about a shortage of lorry drivers, which has created shortages of some products.
The haulage industry says it is struggling to find enough heavy goods vehicle (HGV) drivers to keep the economy moving. But a combination of Covid, Brexit and other factors, means there aren't enough drivers to meet demand.
HGVs transport just about everything around the country. How have companies been affected?
But thanks to a combination of Covid, Brexit and other factors, there aren't enough drivers to meet demand. Nando's temporarily closed 50 sites blaming supply chain issues
McDonalds stopped sales of milkshakes and bottled drinks blaming a shortages of HGV drivers
Haribo is struggling to deliver to the UK because of shortages of HGV drivers
BP temporarily closed a "handful" of its UK sites due to not being able to get petrol and diesel to them
Iceland's managing director told the BBC his company was cancelling 30-40 deliveries a day
Prisoners are going to help plug the worker shortage in the meat industry amid warnings of shortages of some meat products for Christmas.
A Bank of England report, covering April to June, also found that "transportation delays had resulted in shortages of some items, such as furniture, car parts and electrical goods".
Severe shortages of materials for the construction sector, such as cement and timber, as well as problem for the manufacturing sector, were also highlighted.
How serious has the problem become?How serious has the problem become?
Based on a survey of its members, the Road Haulage Association estimates there is now a shortage of more than 100,000 drivers in the UK, out of a pre-pandemic total of about 600,000. There is now a shortage of more than 100,000 drivers in the UK, out of a pre-pandemic total of about 600,000, a Road Haulage Association survey of its members estimates.
That number included tens of thousands of drivers from EU member states who were living and working in the UK.That number included tens of thousands of drivers from EU member states who were living and working in the UK.
Even before Covid, the estimated shortage was about 60,000 drivers.Even before Covid, the estimated shortage was about 60,000 drivers.
But thing have got worse, and there are now warnings from companies and hauliers that they can no longer guarantee all pick-ups and deliveries. But things have got worse, and there are now warnings from companies and hauliers that they can no longer guarantee all pick-ups and deliveries.
Among those speaking up in recent weeks have been the supermarket chain Tesco, and the sweet manufacturer Haribo.
Concern has also been expressed by farmers, by the construction sector and by manufacturers who rely on a tight schedule of deliveries.
Why now?Why now?
There are a number of reasons why the shortages have become so severe.
Covid is certainly part of it. As travel became increasingly restricted last year, and large parts of the economy shut down, many European drivers went home. And haulage companies say very few have returned.Covid is certainly part of it. As travel became increasingly restricted last year, and large parts of the economy shut down, many European drivers went home. And haulage companies say very few have returned.
The pandemic has also created a large backlog in HGV driver tests, so it's been impossible to get enough new drivers up and running.The pandemic has also created a large backlog in HGV driver tests, so it's been impossible to get enough new drivers up and running.
The industry said in a letter to the prime minister in June that there were 25,000 fewer candidates passing their test in 2020 than in 2019.The industry said in a letter to the prime minister in June that there were 25,000 fewer candidates passing their test in 2020 than in 2019.
What about Brexit?What about Brexit?
This was another reason why many European drivers went back to their home countries, or decided to work elsewhere. There is evidence of HGV driver shortages across Europe, but the UK has been among the hardest hit by the problem.
This was because many European drivers went back to their home countries, or decided to work elsewhere.
When the UK was part of the single market, they used to be able to come and go as they pleased.When the UK was part of the single market, they used to be able to come and go as they pleased.
But the additional border bureaucracy after Brexit meant it was too much hassle for many of them to drive into and out of the UK.But the additional border bureaucracy after Brexit meant it was too much hassle for many of them to drive into and out of the UK.
Many drivers are paid by the mile or kilometre rather than by the hour, so delays cost them money.Many drivers are paid by the mile or kilometre rather than by the hour, so delays cost them money.
Tax and conditionsTax and conditions
There have also been tax changes making it more expensive for drivers from elsewhere in Europe to work or be employed in the UK.There have also been tax changes making it more expensive for drivers from elsewhere in Europe to work or be employed in the UK.
The reform of the IR35 rules - on how people working off the payroll pay tax - are designed to prevent workers from setting up limited companies through which they pay less tax and National Insurance while working, in effect, as an employee.The reform of the IR35 rules - on how people working off the payroll pay tax - are designed to prevent workers from setting up limited companies through which they pay less tax and National Insurance while working, in effect, as an employee.
But it means there's less incentive for them to come and work in the UK because they make less money.But it means there's less incentive for them to come and work in the UK because they make less money.
Haulage companies also want better conditions for drivers in general, and a recognition that they are a vital part of the economy.Haulage companies also want better conditions for drivers in general, and a recognition that they are a vital part of the economy.
Why is there a shortage of lorry drivers?Why is there a shortage of lorry drivers?
Lorry driver shortage threatens Haribo sweets
Backlash against longer hours for lorry driversBacklash against longer hours for lorry drivers
They say the average age of HGV drivers in the UK is 55, and more needs to be done to attract younger workers.They say the average age of HGV drivers in the UK is 55, and more needs to be done to attract younger workers.
"The main reasons for the shortage have always been centred around the workforce being an ageing population," says Vikki Woodfine, head of road transport and logistics at the legal and business services group, DWF.
"It is not a role that seems to encourage or appeal to enough younger potential employees entering the market. This issue has of course then been exacerbated by Brexit."
One consequence of shortages, though, has been that some wages for drivers have been going up.One consequence of shortages, though, has been that some wages for drivers have been going up.
What is the government doing about shortages? What is being done about shortages?
For now, the government has slightly relaxed the Drivers' Hours rules, which means drivers will be able to increase their daily driving limit from nine hours to 11 hours twice a week. The government has slightly relaxed the Drivers' Hours rules, which means drivers will be able to increase their daily driving limit from nine hours to 11 hours twice a week.
"This will allow HGV drivers to make slightly longer journeys," a government spokesperson said, "but must only be used where necessary and must not compromise driver safety." The temporary extension to driver hours, which initially ran for four weeks until 8 August was then extended to 3 October. But it has been criticised as compromising safety standards and the industry says it will do little to ease the problems it is facing.
The temporary extension to driver hours, which initially ran for four weeks until 8 August has now been extended to 3 October. But it has been criticised as compromising safety standards and the industry says it will do little to ease the problems it is facing. A government spokesperson said longer journeys "must only be used where necessary and must not compromise driver safety."
There have been warnings about fruit and vegetable deliveries because of driver shortagesThere have been warnings about fruit and vegetable deliveries because of driver shortages
Instead, haulage companies have been calling for a change in the rules to make it easier for drivers from abroad to get temporary visas to work here. Haulage companies want foreign drivers to be added to what's known as the Shortage Occupations list, allowing them to qualify for a skilled worker visa.
They want foreign drivers to be added to what's known as the Shortage Occupations list, allowing them to qualify for a skilled worker visa.
But the Home Office isn't keen. And the government argues that progress is already being made in testing and hiring, and it says a big push is being made towards improving pay, working conditions and diversity.But the Home Office isn't keen. And the government argues that progress is already being made in testing and hiring, and it says a big push is being made towards improving pay, working conditions and diversity.
With many drivers taking time off during the summer holiday season, though, there is real concern that the crunch may be about to come. Examples of the steps being taken by companies include:
Tesco is offering drivers a £1,000 joining bonus
Aldi has increased wages for drivers
Waitrose has given its drivers a pay rise of around £2 an hour while new qualified drivers will receive a "welcome payment" of £1,000.
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