Thursday, April 27, 2017

UK Freight Driver Shortage Attracts Apprenticeship Levy on Road Haulage Operators

Ministers Writes to Transport Managers with Details of Schemes
Shipping News Feature

UK – For many years now we, along with many other professionals from across the UK's supply chain, have been calling on the government to adequately address the chronic driver shortage blighting the country's road freight industry, as the combination of an ageing workforce and a lack of skilled drivers to replace those leaving the sector, threatens to get steadily worse over time. As a result, the Minister of State for Transport John Hayes, the Minister of State for Apprenticeships and Skills Robert Halfon, and the Minister of State for Employment Damian Hinds, have signed a joint letter to Transport Managers highlighting the support available for recruiting the next generation of LGV drivers.

We reprint the letter in full here:

Dear Transport Manager

Recruiting the Next Generation of LGV Drivers

The logistics sector is vital in keeping the UK economy moving. The Government is aware that the industry has a shortage of qualified drivers and it is vital that urgent action is taken to address this. This letter sets out the support available to you in recruiting and training new drivers and how it can be accessed.

Employers in the Logistics sector, led by Nagel Langdons, have developed three new apprenticeship standards covering the following occupations: Supply Chain Operator, Large Goods Vehicle Driver and Supply Chain Warehouse Operative. These have been designed by employers to ensure that the apprenticeship programme delivers the skills the sector needs. These standards have been approved for delivery and details are available here:

From May 2017, apprenticeship funding is changing. Employers with a pay bill over £3 million each year will be required to contribute 0.5% of their payroll as an investment in apprenticeships. This is called the apprenticeship levy and eligible companies will begin paying the levy from 6 April 2017. Employers who pay the levy will be able to access a new digital apprenticeship service that allows them to spend available funds on apprenticeship training.

The vast majority of employers will not pay the levy but will benefit from generous government support to pay for apprenticeship training. Non-levy paying employers will pay 10% towards the costs of apprenticeship training and assessment, while the Skills Funding Agency will pay the 90% government proportion directly to the training provider.

The new apprenticeship levy will fund the expansion and the digital apprenticeship service will enable employers to directly manage their apprenticeship programmes and purchase training. Further information is available

Apprenticeship Funding from May 2017 Full Policy:

Apprenticeship Funding, How it Will Work:

The Skills Funding Agency has launched a new tool to help employers across
England find apprenticeship training. It gives employers information about more than 16,000 apprenticeships and includes information on training providers.


For further information about apprenticeship please visit:

Jobcentre Plus is ready to support your recruitment and offers an extensive range of free services to help you as an employer to reduce costs and grow your business. As employers, it is important to promote the huge range of jobs available. Jobcentre Plus can connect you to a specialist with local knowledge who will provide a tailored service to find the best people for your jobs. Initiatives such as work experience or work trials can provide tasters for those unfamiliar with the range of opportunities available in logistics.

Jobcentre Plus can also help attract and support a more diverse and inclusive workforce.

In order to access this support you should talk to the Business Manager at your local Jobcentre to discuss your requirements and how they can tailor their support to the specific needs of your business. You can also contact a Skills Funding Agency representative if they have further questions about apprenticeships and the levy.

Yours sincerely

The Rt. Hon John Hayes CBE MP – Minister of State for Transport

The Rt. Hon Robert Halfon MP – Minister of State for Apprenticeships and Skills

Damian Hinds MP – Minister of State for Employment