Solving the driver shortage with flexible finance

As the country’s main line of supply, HGV traffic forms the moving backbone of the UK economy and its ability to trade with European partners. It comes as no surprise then, that the much-publicised lorry driver shortages in recent years have caused serious problems.

At the height of the shortage, in late 2021, the shortfall was estimated to be between 60,000 and 100,000 drivers in the UK.[1] Now, with rampant inflation and an energy crisis, it is imperative to bring supply lines back under control and get goods moving across the country.

However, the price of HGV training courses can be a barrier for many potential drivers. Flexible financing options can help increase the uptake of training needed to overcome the UK’s HGV driver shortage. This will fix a national issue, whilst simultaneously helping people to earn money for a better standard of living.

How did we get here?

The shortage in lorry drivers across the UK is by no means a new phenomenon. An ageing population of HGV operators has seen a retirement crisis looming for many years. At the same time, the industry has been struggling to attract younger people, often due to the upfront costs and time associated with getting adequate training and licences.

The issue had been masked in the sector by the fact that a large number of drivers were EU workers, many of whom returned to their home countries post-Brexit. Research shows that the number of HGV drivers in employment in the UK has fallen by 30,300 in the first quarter of this year.[2] The growth of e-commerce and online grocery shopping has put further pressure on supply chains. In short, more and more of the country’s population is relying on an understaffed occupation – HGV drivers.

Delivering sustainable solutions

The issue has been noted by both the private and public sectors and a mixture of legislation and pay rises have made somewhat of a difference in lifting the number of new recruits. However, the government’s temporary visa allowance of late 2021 showed little success, proving that the focus must lie with home-grown training rather than temporary overseas recruitment.[3]

This month, the government announced proposed changes in testing regulation[4] which may make training courses easier and less lengthy for new applicants, removing any bottlenecks in the process. However, one of the more straightforward issues is the cost of driver training.

This is where financing options can make a real difference and help support the service sector, especially in times when customers face a cost-of-living crisis.

Flexible finance fuelling supply chains

Offering an affordable payment structure to people wishing to (re)train as lorry drivers will provide a simple and swift solution to the affordability issues faced by prospective drivers.

Finance providers such as Deko, who offer a multi-product, multi-lender platform, can alleviate the cost issue for new drivers. Importantly, this will also be a significant support for retailers, as improved payment options will help training providers to build up demand.

Deko, with its multi-lender offering, can cover a wide range of basket sizes and therefore a wide range of courses. This is unlike traditional finance providers who have limited coverage, both in terms of basket sizes and repayment terms.

Providing a solution

By splitting payments into several instalments, finance providers like Deko can make a real difference in the nationwide uptake of new recruits. This is essential to fix the retirement crisis among lorry drivers and provides a whole generation with the ability to obtain the right training for the right cost.

Importantly, improved payment options can be the key to helping a whole swathe of the UK’s population upskill in the face of a cost-of-living crisis.  This can ease the transition into a new career, lifting salaries for individuals and raising demand for training centres across the country.


Author: Huw Phillips, Head of Sales at Deko

[1] https://research.senedd.wales/research-articles/delivering-the-goods-can-we-solve-the-hgv-driver-shortage/

[2] https://logistics.org.uk/media/press-releases/2022/may/hgv-driver-shortage-persists-but-recruitment-initi

[3] https://fullfact.org/news/boris-johnson-HGV-driver-petrol-crisis/

[4] https://www.telegraph.co.uk/news/2022/08/04/motorists-could-allowed-drive-lorries-without-extra-test-brexit/

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