Gi Group warns of supermarket stock delays amid HGV driver shortage

The Chesterfield-headquartered recruitment firm points to restrictive insurance policies and a lack of targeted incentives for Class 2 drivers as key factors that are creating a dangerous bottleneck and leaving essential deliveries at risk. 

With only 13% of the logistics workforce under 25, and young, qualified drivers stuck in a catch-22 of needing experience to get insured but insurance to get experience, the company is calling for government-backed insurance reform and stronger incentives, which it said are crucial to prevent disruption.

Joe Bagworth, Gi Group assistant manager, said: “The logistics industry has faced a number of challenges in recent years from an ageing workforce and new HGV driver insurance to IR35 compliance and the increase to minimum wage.

“We have seen first-hand the barriers in place for trained drivers within the industry which we feel is only going to increase driver shortages, particularly for Class 2.

“It is no secret that the industry has, and continues to face, an ageing workforce, but this is only being perpetuated further as the government introduces entry barriers.

“I’ve been working within logistics recruitment for the past four years, and in that time I have seen the gaps between Class 1 and Class 2 drivers increase dramatically.”

Bagworth said if action is not taken to incentivise more people into becoming Class 2 drivers, essential services such as supermarket deliveries could face severe disruption.

He said Class 2 drivers play a critical role in ensuring shelves are stocked and local logistics run smoothly, warning that the current shortage poses a real threat to these services, which millions of people rely on daily.

“Class 1 drivers are trained to do long journeys from A to B, whereas Class 2 drivers and 7.5-tonne drivers will focus on shorter drop off routes.

“Historically, you used to have to work your way up to be a Class 1 driver but with industry changes, you can now go straight in at that level.

“This means we’re seeing fewer and fewer Class 2 and 7.5-tonne drivers on our books.

“If this trend continues, the sector will be facing some very real problems - and so will businesses and consumers.”

Gi Group said part of the problem is the ageing workforce and the reluctance of  Gen Z to consider commercial driving as a career path.

According to the latest data from the International Road Transport Union (IRU) only 13% of the UK’s logistics workforce is under the age of 25.

Bagworth added: “Everyone knows that 25 is the lucky number when it comes to insurance, whether for cars or HGVs. But as the government is supporting more individuals through their driver training, they’re coming out qualified with nowhere to turn.

“Until you have a license for six months, you won’t be insured but without insurance, individuals can’t get experience. It can often feel like when a solution to one challenge is found, another presents itself.

“The barriers to insurance mean people are stuck without a job as you can’t just wait around for six months without a stable income.

”In addition, qualified drivers under the age of 25 face prohibitively expensive premiums. Without affordable insurance, companies are reluctant to hire inexperienced drivers, leaving them unable to gain the necessary on-road experience.

“This catch-22 situation is stalling careers and exacerbating driver shortages across the industry.”

To address these challenges, Bagworth believes the government, working closely with the recruitment industry and driver organisations to create innovative insurance reform, could be key to expanding the workforce.

He also emphasised the need for targeted incentives to encourage drivers to pursue Class 2 or 7.5-tonne roles rather than heading straight for Class 1 positions, which currently offer higher pay and prestige.

Without this balance, supermarket shelves and local deliveries could face significant disruption and have huge impacts across the UK, Bagworth warned.

“Getting HGV drivers insured and on the road is our greatest challenge, but one I think is solvable.

“But we need an urgent focus on Class 2 driver incentives and insurance reforms to prevent serious impacts on everyday services.”