HGV and Van Drivers' Salaries Set to Increase

In April 2025, the National Living Wage will increase from £11.44 to £12.21, a 6.7% increase. In addition the rate of employer’s National Insurance Contributions (NICs) will rise by 1.2% to 15% and the threshold will fall from £9,100 to £5,000, raising employment costs for many businesses. 

If all wages increase by similar amounts to retain the differentials between pay grades, then UK delivery and haulage firms could be facing a potential increase of around £1.5 billion in drivers’ wages. 

According to Reed, the average UK HGV driver’s salary is approximately £36k per annum, this would increase to £38.4k if increased by the same percentage as the rise in the National Living Wage. With an ongoing lack of HGV drivers to fulfil demand companies will need to do all they can to retain existing drivers. According to SNAP, who in October 2023 reported that we do not have enough new drivers entering the industry to replace those retiring or leaving. Poor pay was cited as one of the primary causes for the driver shortage. 

Employment costs are set to increase further for delivery and haulage firms, already battling with rising costs, for maintenance and spare parts, delivery companies must do all that they can to reduce operational costs. Optimising delivery routes can not only improve the delivery capacity and productivity of the existing fleet and drivers, but can also reduce fuel and maintenance bills. 

Discover more on how Descartes can help fleet operators increase delivery capacity while lowering costs by contacting us now for a free, no-obligation 30-minute consultation.