How Much Does It Cost to Hire an HGV Driver Through an Agency?
How Much Does It Cost to Hire an HGV Driver Through an Agency?
Quick Answer
The cost of hiring an HGV driver through a recruitment agency depends on the driver's pay rate, holiday pay and employment costs, along with the agency's costs for recruiting, checking, supplying and managing the driver.
There isn't one standard HGV agency charge rate.
Rates can vary depending on the:
- Location
- Licence class
- Type of work
- Shift pattern
- Experience required
- How much notice is given
- How easy the assignment is to fill.
A reputable HGV recruitment agency should always be able to clearly explain how its charge rate is calculated and what is included.
So, what are you actually paying for?
What Is an HGV Agency Charge Rate?
The charge rate is the amount a client pays the recruitment agency for each hour or shift an agency driver works.
It's important not to confuse the agency charge rate with the driver's pay rate.
If an agency charges you £25 per hour, for example, the difference between that £25 and the driver's basic hourly rate isn't simply agency profit.
The charge rate has several costs sitting behind it. Depending on the employment and payment arrangement, these can include:
- The driver's basic pay
- Holiday pay
- Employer's National Insurance
- Employer pension contributions
- Apprenticeship Levy
- Contingency for SSP and other statutory costs
- Insurance
- Account management and out-of-hours support
- The agency's margin
A compliant agency should understand these costs and be able to explain them.
What Sits Behind the Driver's Pay Rate?
The biggest part of an agency charge rate is normally the cost of supplying the driver.
That starts with the driver's basic rate of pay, but an agency employing PAYE workers has additional employment costs to account for.
Holiday Pay
Agency workers are entitled to paid annual leave.
Holiday pay therefore needs to be accounted for in the cost of supplying a PAYE driver. Depending on the arrangement, the worker may accrue their holiday pay to use when taking leave or receive rolled-up holiday pay where this is lawfully operated.
Either way, it is a genuine employment cost and needs to be included when calculating a sustainable charge rate.
Employer's National Insurance
Employers also have National Insurance liabilities on employee earnings above the relevant thresholds.
This is paid by the employer. It isn't a deduction from the driver's advertised gross pay.
For agency workers, that cost therefore needs to be reflected in the client charge rate.
Pension Contributions
Where a worker meets the relevant criteria for workplace pension auto-enrolment, the agency may also be responsible for employer pension contributions.
Again, this is an additional employment cost that needs to be accounted for when calculating the cost of supplying the driver.
Apprenticeship Levy
Larger employers with an annual pay bill above the relevant threshold are also required to pay the Apprenticeship Levy.
For agencies operating at this level, the levy is another employment-related cost attached to payroll and needs to be taken into account when calculating charge rates.
It may look like a relatively small percentage when viewed in isolation, but when you're processing payroll for hundreds of temporary workers every week, these additional employment costs quickly add up.
Statutory Sick Pay and Other Employment Responsibilities
There are also statutory responsibilities that come with being the driver's employer.
For eligible workers, this can include Statutory Sick Pay (SSP) when they are unable to work due to illness.
There can also be statutory rights and payments connected with maternity, paternity, adoption and other types of statutory leave, depending on the worker's individual circumstances and eligibility.
Not every driver will use these entitlements, and the exact cost to the employer will depend on the circumstances and the statutory rules in place at the time.
But the important point is that when an agency employs a driver through PAYE, it takes on the responsibilities and administration that come with being an employer.
That includes managing areas such as:
- Holiday entitlement and holiday pay
- Employer's National Insurance
- Workplace pension obligations
- Apprenticeship Levy where applicable
- Statutory Sick Pay
- Statutory family-related leave and payments
- Payroll administration
- PAYE deductions and reporting
- Employment records and statutory documentation
These responsibilities don't disappear because somebody is a temporary agency worker.
What Does the Agency Margin Pay For?
Once the cost of employing the driver has been accounted for, there is the agency's margin.
At Elite, work takes place before a driver is supplied to a client and continues throughout the assignment.
This includes areas such as:
- Recruitment and attraction - Finding suitable HGV drivers requires ongoing investment in job advertising, databases, social media, referrals and candidate attraction.
- Registration and compliance - Before supplying a driver, checks need to be completed. Depending on the assignment, this can include:
- Right to Work
- Driving licence, Driver CPC, Digital Tachograph Card
- Experience and other client-specific requirements.
- Licence checking – A driver's licence doesn't only need checking when they first register. Agencies need appropriate processes for ongoing compliance and identifying changes that could affect a driver's suitability.
- Payroll - Temporary workers need to be paid accurately and on time, regardless of when the agency itself receives payment from the client.
- Account management - Requirements change. Drivers call in sick. Volumes increase. Start times move. Extra shifts appear at short notice. Managing a temporary driver workforce requires people to deal with those changes.
- Out-of-hours support - Transport doesn't operate exclusively between 9am and 5pm.
All of these things have a cost.
Why do HGV Agency Charge Rates Vary?
One of the questions we're regularly asked is why the agency rate for one HGV job is different from another.
Usually, the answer starts with the driver pay rate and Location of the work.
HGV driver rates vary across the UK and can vary considerably even between locations that aren't particularly far apart.
Type of HGV Work
Not all HGV driving work attracts the same number of drivers.
- Straightforward RDC trunking may attract a different candidate pool from store deliveries involving roll cages and unloading.
- Tramping, containers, multi-drop, nights, specialist equipment and other types of work can all have different market rates.
If the driver needs a higher rate to make the assignment competitive, the client charge rate will also increase.
Days, Nights and Weekends
The shift matters too. A Monday-to-Friday day shift will often have a different market rate from nights, Saturdays or Sundays.
If you need regular weekend cover or particularly difficult start times, the pay rate needs to be competitive enough to attract drivers to those shifts.
Experience Requirements
Requiring more experience reduces the number of drivers available for an assignment.
If you require two years' HGV Class 1 experience when the operation could safely accommodate somebody with less experience, you're choosing to recruit from a smaller candidate pool.
That can affect the rate required to fill the role.
How Much Notice You Give
This is often overlooked.
A client offering five guaranteed shifts next week gives an agency much more opportunity to plan than a client calling at 4pm asking for a driver at 4am the following morning.
Both requirements can potentially be covered.
But short-notice, ad-hoc work can require a higher driver rate, particularly when you're asking somebody to change plans or choose your shift over other available work.
How Consistent the Work Is
Regular work is generally easier to recruit for and retain drivers on.
If we can offer somebody a predictable rota for several weeks, there's value in that certainty.
If the requirement changes daily and there is no guarantee of another shift, the rate may need to work harder to attract drivers.
Why Is One HGV Agency Cheaper Than Another?
This is where clients need to look beyond the headline charge rate.
If Agency A quotes £24 per hour and Agency B quotes £27, it doesn't automatically mean Agency A offers better value.
Find out what's behind both rates:
- Are the drivers receiving the same pay?
- How is holiday pay being dealt with?
- What employment model is being used?
- Are all statutory employment costs accounted for?
- Who is processing payroll?
- What compliance checks are being completed?
- What happens out of hours?
- What experience do the internal recruitment staff have?
- What insurance and industry accreditations does the agency hold?
And, importantly:
Can the agency clearly break down its charge rate?
A very low charge rate needs to add up.
If an agency can't clearly explain how the worker is being paid, how statutory employment costs are being met and how the remaining margin supports the service being provided, that's something we'd recommend asking more questions about.
Is the Cheapest HGV Agency Actually the Cheapest?
Not necessarily.
The hourly charge rate is only one part of the cost of temporary recruitment.
Consider what happens if a driver:
- Doesn't turn up
- Isn't properly checked
- Isn't suitable for the work
- Leaves halfway through the assignment
- Can't be replaced
- Causes additional work for your transport team
A £1 saving on an hourly charge rate can quickly become irrelevant if your internal team spends hours trying to solve staffing problems.
When comparing HGV recruitment agencies, we'd recommend looking at service, compliance and reliability alongside price.
The objective isn't simply to find the lowest hourly charge rate.It's to get the right drivers onto your operation when you need them.
How Can You Keep Your HGV Agency Costs Under Control?
There are things clients can do to make their temporary driver requirement easier to recruit for and potentially reduce the premium needed to attract drivers.
Where possible:
- Book requirements as early as you can
- Offer regular shifts rather than purely ad-hoc work
- Give accurate start times
- Keep shift patterns consistent
- Review whether experience requirements are genuinely necessary
- Make sure your pay rates are competitive for the type of work, not just the licence class
- Give your agency accurate information about the job
- Treat regular agency drivers as part of the wider team
- Work with your agency to forecast peak and holiday requirements
Good planning gives an agency more opportunity to build a regular driver pool around your operation rather than continually recruiting at short notice.
What Should You Ask an HGV Recruitment Agency About Its Rates?
Before choosing an agency based on price, ask them to explain what you're actually buying.
Some useful questions include:
- What is the driver's basic pay rate?
- How is holiday pay dealt with?
- What employment status will the drivers have?
- What statutory employment costs are included?
- Who processes the driver's payroll?
- What compliance checks do you complete before supplying a driver?
- How often are licences rechecked?
- What support is available outside office hours?
- What happens if a driver doesn't attend?
- Can you clearly explain how you've arrived at my charge rate?
A professional recruitment agency should be comfortable answering those questions.
So, How Much Does It Cost to Hire an HGV Driver Through an Agency?
There isn't a single UK rate for hiring an HGV driver through an agency.
The final cost will depend on the driver pay rate required for your assignment, statutory employment costs, the level of service being provided and the agency's margin.
A Class 1 driver completing straightforward weekday trunking in one location won't necessarily cost the same as an experienced driver covering weekend store deliveries at short notice somewhere else.
That's why at Elite we look at the actual requirement before recommending a rate.
We consider:
- the location
- type of work
- shifts
- experience
- local market
- and consistency of the requirement
So that we can recommend a rate designed to attract and retain suitable drivers and we'll explain what's behind that rate.
Need a Cost for HGV Agency Drivers?
If you're reviewing your current agency rates, planning for peak or considering temporary HGV drivers for the first time, speak to our Driving Team.
Tell us:
- Where you need drivers
- HGV Class 1 or Class 2
- Type of work
- Days/nights/weekends
- Start times
- Experience required
- How many drivers you need
- Whether the work is ad-hoc or ongoing
We'll talk you through the market and what you should realistically expect to pay.
Skilled. Reliable.
Elite.


















