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UK Government’s desperate appeal to HGV drivers

  • Up to 4,000 people will be trained as new HGV drivers to help tackle skills shortages and support more people to launch careers within the logistics sector.
  • Package of measures includes using MOD examiners to help increase immediate HGV testing capacity by thousands over the next 12 weeks.
  • Nearly 1 million letters to be sent to all drivers who currently hold an HGV driving licence, encouraging them back into the industry.
  • 5,000 HGV drivers and 5,500 poultry workers added to existing visa scheme until Christmas 2021 to ease supply chain pressures in food and haulage industries during exceptional circumstances this year.

The UK Government is taking belated action to tackle the shortage of HGV drivers. Industry leaders have warned the government of an impending crisis since before Brexit.

Up to 4,000 people will soon be able to take advantage of training courses to become HGV drivers, as part of a package of measures announced yesterday by the government to ease temporary supply chain pressures in food haulage industries, brought on by the pandemic and the global economy rebounding around the world.

The Department for Education is investing up to £10 million to create new skills bootcamps to train up to 3,000 more people to become HGV drivers. The free, short, intensive courses will train drivers to be road ready and gain a category C or category C&E licence, helping to tackle the current HGV driver shortage.

An additional 1,000 people are expected to be trained through courses accessed locally and funded by the government’s adult education budget.

Fuel tanker drivers need additional safety qualifications, which the government will work with industry to ensure drivers can access as quickly as possible.

To help make sure new drivers can be road ready as quickly as possible, the Department for Transport (DfT) have also agreed to work with Driver and Vehicles Standards Agency (DVSA) to ensure that tests will be available for participants who have completed training courses as soon as possible.

The Ministry of Defence (MOD) has also announced the immediate deployment of their Defence Driving Examiners (DDEs) to increase the country’s testing capacity. MOD examiners will work alongside DVSA examiners, providing thousands of extra tests over the next 12 weeks.

The package comes as the DfT, along with leading logistics organisations have worked with the DVLA to send nearly 1 million letters to thank HGV drivers for their vital role supporting our economy, and to encourage those who have left the industry to return.

The letter, which will arrive on doormats over the coming days, sets out that the steps the road haulage sector is taking to improve the industry, including increased wages, flexible working and fixed hours.

Alongside this, 5,000 HGV drivers will be able to come to the UK for 3 months in the run-up to Christmas, providing short-term relief for the haulage industry. A further 5,500 visas for poultry workers will also be made available for the same short period, to avoid any potential further pressures on the food industry during this exceptional period.

Recruitment for additional short-term HGV drivers and poultry workers will begin in October and these visas will be valid until 24 December 2021. UK Visas and Immigration (UKVI) are preparing to process the required visa applications, once made, in a timely manner.

However, we want to see employers make long term investments in the UK domestic workforce instead of relying on labour to build a high-wage, high-skill economy.

Visas will not be the long term solution, and reform within the industry is vital. That’s why the government continues to support the industry in solving this issue in the long term through improved testing and hiring, with better pay, working conditions and diversity.

Transport Secretary Grant Shapps said: This package of measures builds on the important work we have already done to ease this global crisis in the UK, and this government continues to do everything we can to help the haulage and food industries contend with the HGV driver shortage.

“We are acting now but the industries must also play their part with working conditions continuing to improve and the deserved salary increases continuing to be maintained in order for companies to retain new drivers.

“After a very difficult 18 months, I know how important this Christmas is for all of us and that’s why we’re taking these steps at the earliest opportunity to ensure preparations remain on track.”

Separately, the government is also bringing in legislation to allow delegated driving examiners at the three emergency services and the MOD to be able to conduct driving tests for one another. This will give the emergency services greater flexibility and help increase the number of tests DVSA examiners can provide HGV examiners.

The government will also provide funding for both medical and HGV licences for any adult who completes an HGV driving qualification accessed through the Adult Education Budget in academic year 2021/22.

Previously, adults who took these qualifications had to pay for their own licences. This change will be backdated and applied to anyone who started one of these qualifications on or after August 1st 2021.

Education Secretary Nadhim Zahawi said: “HGV drivers keep this country running. We are taking action to tackle the shortage of drivers by removing barriers to help more people to launch new well-paid careers in the industry, supporting thousands to get the training they need to be road ready.

“As we build back from the pandemic we’re committed to supporting people, no matter their background, to get the skills and training they need to get good jobs at any stage of their lives, while creating the talent pipeline businesses need for the future.”

Environment Secretary George Eustice said: “It is a top priority to ensure that there are enough workers across the country’s supply chains to make sure they remain strong and resilient.

“We have listened to concerns from the sector and we are acting to alleviate what is a very tight labour market.”

The government has been able to bring forward these solutions in response to a global issue made worse by coronavirus thanks to our existing work in this area. We have already taken a range of steps to support the industry, including streamlining the process for new HGV drivers and increasing the number of driving tests. Our measures provided a rapid increase in capacity and allow for an extra 50,000 tests to take place per year.

Progress has already been made in testing and hiring, with improving pay, working conditions and diversity. We continue to closely monitor labour supply and work with sector leaders to understand how we can best ease particular pinch points. Through our Plan for Jobs we’re helping people across the UK retrain, build new skills and get back into work.

The Food and Drink Federation’s Chief Executive, Ian Wright CBE, said: “We welcome the government’s pragmatic decision to temporarily add HGV drivers and poultry workers to the existing visa scheme.

“This is something UK food and drink manufacturers have asked for over the last few months – including in industry’s Grant Thornton report – to alleviate some of the pressure labour shortages have placed on the food supply chain.

“This is a start but we need the government to continue to collaborate with industry and seek additional long term solutions.”

Elizabeth de Jong, Logistics UK’s Director of Policy, said: “Logistics UK welcomes the government package of measures aimed at improving the ongoing driver crisis. The government’s decision to grant 5,000 temporary visas for HGV drivers to help in the short term is a huge step forward; we are so pleased the government has listened to our calls and has made this bold decision to support the UK economy.

“We are also delighted that DfT have agreed to jointly send nearly 1 million letters to all drivers who currently hold an HGV driving licence. With fantastic HGV driving opportunities available in the logistics industry, now is the perfect time to consider returning to the occupation.”

The Road Haulage Association says there is a shortage of around 100,000 drivers across the UK, with this particularly impacting the food and drink supply chain.

The Road Haulage Association’s Rod McKenzie said: “This is a major win for ⁦@RHANews⁩ in our long campaign on #lorrydriver shortage – but temp visas won’t solve it. Much more needs to be done on training, apprenticeships, testing and welfare facilities for truckers.”

British Chamber of Commerce President, Baroness Ruby McGregor-Smith CBE said: “Government has made clear its priority is to transition from a reliance on EU workers to a focus on the domestic workforce, and businesses have been ready to participate in this, but it is a long-term project.

“A managed transition, with a plan agreed between government and business, should have been in place from the outset. Instead, the supply of EU labour was turned off with no clear roadmap as to how this transition would be managed without disruption to services and supply chains.

“Now some action has been taken, but additional testing will take time and the low number of visas offered is insufficient. Even if these short-term opportunities attract the maximum amount of people allowed under the scheme, it will not be enough to address the scale of the problem that has now developed in our supply chains.

This announcement is the equivalent of throwing a thimble of water on a bonfire.

“Government should be prepared to significantly expand the number of visas issued within this scheme and convene a summit that brings business and government together to find both immediate and longer-term solutions to the many challenges facing firms throughout the UK.

“Without further action, we now face the very real prospect of serious damage to our economic recovery, stifled growth as well as another less than happy Christmas for many businesses and their customers across the country.”

Hannah Essex, Co-Executive Director of the British Chambers of Commerce, said: “Chambers of Commerce have been warning Government about critical labour shortages for months now – not just in the food and haulage industries but in hospitality, construction, the care sector and elsewhere in the economy. Whilst businesses will welcome that government is finally taking action, this scheme does not go far enough.

“BCC data has shown that 76% of hospitality businesses, and 82% of construction firms have faced recruitment difficulties in recent months. At the same time, we found 3 out of 4 exporters reporting no growth in sales in Q2.

“Businesses are facing the most difficult environment for a generation. On top of labour shortages – border delays, increased debt and the rising cost of materials, shipping and energy are all putting huge pressure on firms struggling to recover from the pandemic. All of these issues are hitting smaller firms the hardest.

“Attempts to address the deficit of HGV drivers and poultry workers is a step forward, but these industries are only the tip of the iceberg when it comes to the huge impact of the current labour shortages. Without a comprehensive plan to tackle this issue across the board we are facing a winter of lost opportunities for our businesses, hampering the UK’s economic recovery.”

Bleak outlook as a third of firms set to cut jobs over coming months

Results from the British Chamber of Commerce’s Quarterly Recruitment Outlook, in partnership with Totaljobs, reveal the impact Coronavirus has had on the jobs market, with the two organisations calling for further action from government to protect businesses and jobs.

  • 29% of businesses expect to decrease the size of their workforce in the next three months
  • 28% decreased size of workforce in Q2 but 66% kept their workforce constant, reinforcing the success of the Job Retention Scheme
  • The two organisations call for a cut in employer National Insurance Contributions to protect businesses and jobs.

The leading business organisation’s landmark survey, which serves as a barometer of the UK labour market, received 7,400 responses and is the largest of its kind in the UK.

Fieldwork was done prior to the Chancellor’s Summer Statement which announced the Job Retention Bonus, Kickstart Scheme and an Apprenticeship Recovery programme, among other things.

Redundancies expected

29% of businesses expect to decrease the size of their workforce in the next three months before the government’s Job Retention Scheme ends, the highest on record.59% will keep headcount the same and just 12% will look to increase the size of their workforce.

The news comes as businesses across the UK economy announced significant redundancies. The survey found that over the next three months:

  • 18% of micro firms (with fewer than 10 employees) expect their workforce to decrease.
  • 41% of small and medium firms (with 10 to 249 employees) expect their workforce to decrease.
  • 41% of large firms (with over 250 employees) expect their workforce to decrease.

The survey reinforced data from the BCC’s Quarterly Economic Survey of the challenging environment business communities across the UK are facing, with record falls in key indicators of business activity, including domestic and export sales, cashflow and investment.

Recruitment

The percentage of businesses attempting to recruit in the previous quarter fell to 25%, the lowest level on record. Of the firms that attempted to recruit, 65% faced recruitment difficulties, particularly for skilled manual/technical or managerial roles.

Success of the Job Retention Scheme

While 28% of respondents decreased their workforce in Q2, two in three firms kept staffing levels constant. This reflects data on the success of the Job Retention Scheme, with the BCC’s Business Impacts Tracker indicating that around 70%of businesses had furloughed a portion of their staff.

Beginnings of recovery?

As lockdown lifts, Totaljobs have seen a 30% month-on-month increase in the number of jobs being advertised on their website for June, with the largest volume posted in IT (20k), logistics (12k) and social care (9k).

There were also month on month increases in sectors benefiting from lockdown easing like retail (+51%), travel (+47%) and hospitality (+23%). Skilled trades also started to see growth compared with previous weeks, with jobs advertised increasing by57%.

Unsurprisingly, applications per vacancy were up across all sectors, reflecting continued rises in candidate activity on the Totaljobs site.

Further action needed

The two organisations have called on the government for further action to limit the damage to the UK labour market, including reducing the overall cost of employment, through a temporary cut in employer National Insurance Contributions and support to upskill and reskill employees as businesses adapt to change.

BCC Co-Executive Director Hannah Essex said: “Our research demonstrates the Chancellor’s focus on protecting, supporting and creating jobs is exactly what’s needed to drive the UK’s economic recovery in the coming months.

“Many businesses are suffering from an historic cash crunch and reduced demand, meaning firms will still face tough decisions despite welcome interventions made in the Summer Statement.

“The government should consider additional support for employers before the Autumn Budget to reduce the overall cost of employment and prevent substantial redundancies.Measures could include a temporary cut in employer National Insurance Contributions and support to upskill and reskill employees as businesses adapt to change.”

Totaljobs CEO Jon Wilson said: “The latest figures from the Quarterly Recruitment Outlook make stark reading, especially when compared to what we had grown accustomed to in previous years. It is clear that business confidence is low, with many being forced to make difficult decisions when it comes to their workforce.

“However, the Chancellor’s summer statement outlined a number of measures that will not only support jobs but help create new roles in the economy and give confidence to businesses trying to plan for the future. The interim cuts in stamp duty and VAT should give the hard-hit housing and hospitality sectors a much-needed boost.

“It’s clear that moving forward, adaptability remains paramount for businesses and people, with upskilling, reskilling and utilising transferable skills all key factors during this recovery period. 

“To protect jobs and further ease the burden facing businesses, we join the British Chambers of Commerce in their call for a cut in employer National Insurance. We also urge the Chancellor to continue to consider the needs of the sectors and demographics most impacted by Covid-19, to protect people’s livelihoods and help the jobs market and wider economy pick up.”

Commenting on the latest employment figures published today (Thursday), which show around 650,000 fewer paid employees since before the pandemic, TUC General Secretary Frances O’Grady said:  “There’s a national disaster unfolding, with vacancies at an all-time low and more jobs lost every day, but ministers are watching from the side-lines, instead of saving jobs with targeted support for the hardest-hit sectors like retail, manufacturing and aviation. 

“The more people we have in work, the faster we will work our way out of recession. If the government doesn’t go all out to protect and create jobs, the economic crisis will be longer and harder. 

“We can create jobs by fast-tracking infrastructure projects. This would speed up the delivery of faster broadband, more childcare, green technology, modern transport and housing. And it would create over a million jobs across the UK.” 

You can view the full QRO report at the link below:

BCC QRO Q2 2020