Among the most common questions that new drivers will ask when obtaining their HGV licence and changing to HGV driving is how much they will make. We understand the need to know the answer to the question. Everyone will be interested in understanding how well they will be compensated for doing the work they’re hired for and it’s a big consideration before they can make the decision to move to the new job. The difficulty in answering the question about how much they will get paid is that there is no definitive answer for every driver. Even so, there are some guidelines that will likely be helpful. There are statutory minimums and some known trends that can help you understand whether the pay will be sufficient. That’s what we’re going to cover below.
Statutory Minimums
There are a number of specific rules this industry is governed by but the legal wage minimums still apply here as they do elsewhere. This includes when someone is at the Apprenticeship Levy. Under the regulations of minimum wage if you are age 21 to 24 then you can expect £7.38. Those who are between 18 and 20 will get £5.90.
Anyone between the ages of 16 and 17 will likely not be driving but if they’re working then the minimum wage is £4.20. The apprenticeship rate is subject to certain conditions but is generally £3.70. It’s also important to understand that those are the minimum wages that are required by law but as long as it meets the minimum then it’s not necessarily what you’ll get as you could get over that.
Employers that want to recognise the value of their drivers to encourage them when they have good performance may do so by paying more. The living wage is meant to provide better security for employees respective of their age. In 2016 employees who were over 25 years old had a minimum wage of £7.20.
The Apprenticeship Levy starting in 2017 increased to £7.50. The following year it increased again to £7.83 and in the spring of 2019, it again increased to £8.21. When a firm has a gross payroll above £3m who have to pay half a percent of gross payroll were informed of the Apprentice Levy that came into effect April 2017. When they provide approved training using Trailblazer or England apprenticeships then they can get their payment back.
Driver Subsistence
Over the years there has been some controversy about reimbursing drivers. The HMRC introduced a new system that ultimately created a lot of confusion and additional work. This caused the need for a new system to be used starting the fall of 2017. This gave away for employers to be able to pay and reimburse drivers more consistently. It accomplished that with the following:
- Benchmark scale rate payments
- Bespoke agreements
- Industry scale rates
- Overseas scale rates
- Other allowances
- Direct expense claims
- Industry scale rate
Although there isn’t a set payment amount, the industry has agreed on the scale for reimbursement and pay for the HGV drivers who are working and sleeping while away from home. The scale has been around for several years and stayed the same since the year 2013. Drivers who have a sleeper cab are paid £26.20. Those who do not have a sleeper cab can get up to £34.90. An employer can decide for themselves whether they want to reimburse the costs or use the scale and which you get will depend on where you work. If the employer does use the scale then they are checked by HMRC. This is done to make sure they follow the rules correctly.
Good News
You needn’t worry if some of this sounds confusing. Almost 80% of drivers say that they’ve got an increase in pay over the year before. The average increase was more than two and a half percent. In the South, the rate was even higher. In the north, they were somewhat lower. It is currently estimated that about 85% of HGV drivers make more than the national living wage. It’s difficult to know for certain by exactly how much more they are making. You can go to page 5 to view a more detailed report to see how much you might earn.