Charlotte Haye 24th July 2019

How Much Does Being An HGV Driver Pay?

This might be the single most common question we get asked by new drivers looking to make the change into HGV driving. And we can’t say we blame them! In any career, you want to know that you will be well compensated for any work you are doing, and pay is a big consideration in any job move. The bad news is, there is no single, definitive amount every HGV driver gets paid – but there are some helpful guidelines, some statutory minimums and some trends that can help you work out if the pay is right for you. Which is what we’re going to talk about today.

The Statutory Minimums

The HGV industry is governed by many of its own rules, but ultimately things like legal wage minimums still apply. That means you are still covered by the National Minimum Wage, the National Living Wage, and even the Apprenticeship Levy.

To meet the National Minimum wage, you can expect a minimum per hour wage of:

£7.38 if you are aged 21-24
£5.90 if you are aged 18-20
£4.20 if you are aged 16-17 (though you may not be driving at this stage)
£3.70 is the apprentice rate, which is subject to a few conditions.

But of course, just because that is the minimum you can legally be paid, doesn’t mean that’s what you will get. Many employers recognise the value of paying their drivers more to encourage better performance. The National Living Wage is designed to provide secure, liveable wages for employees of all ages. The National Living Wage is for employees aged 25 and over with a level originally set at £7.20 in 2016. This increased to £7.50 in 2017, £7.83 in 2018 and from 1 April 2019 this will become £8.21, which is an increase of 4.85%.

The Apprenticeship Levy came into place from 6 April 2017, for firms with a gross payroll cost above £3m who have to pay 0.5% of gross payroll. Levy payers can claim back their payment only through approved training – England, Trailblazer apprenticeships. Adult educational funding has been devolved and each country has its own system or is working on such a system.

Driver Subsistence

When it comes to reimbursing drivers, there has been a bit of controversy over the years. A new system introduced by HMRC caused a lot of confusion and extra work, and eventually a new system was brought into place in September 2017. This system laid out size options for employers that enable them to reimburse and pay drivers in a consistent manner. These are:

Benchmark scale rate payments
Agreed industry scale rate (with a lorry drivers overnight subsistence allowance)
Bespoke agreements
Other allowances
Overseas scales rates
Direct expense claims

Agreed Industry Scale Rate

The first thing to note is that while there is no set payment amount, there is an agreed industry scale for reimbursement or pay when it comes to pay for HGV drivers who are sleeping and working away from home. This scale has been in place for many years, and has remained the same since 2013. For drivers with a sleeper cab, this is £26.20, and for drivers without a sleeper cab it goes up to £34.90. It’s up to employers whether they want to reimburse actual costs or go down the route of using the scale, so it will vary depending on who you work for. What you can be assured of is that if your employer uses the scale, they are being checked by HMRC to ensure they are following all the rules.

Some Good News

If all o that sounds confusing, don’t worry – there is some good news in here too. 79.1% of drivers reported receiving a pay increase in the last year, with the average increase amount being around 2.57% of their salary. This rate was higher in the South, with pay rises in the north being slightly lower. On average, 85% of HGV drivers are earning well above the National Living Wage, though it’s difficult to tell by how much. If you want to see exactly how much you could earn, you can view the full report here and go to page 5.

At Easy as HGV, we are dedicated to being honest with all of our trainee drivers, making sure they understand everything about the industry before they move on into the world. That includes helping them understand how much they could earn, prepping for interviews and getting them ready for work as an HGV driver. If you would like to know more, just get in touch with the team today.