Ocado says delivery driver wage rise to cost it up to £5m

Ocado says attracting new delivery drivers through higher wages and sign-on bonuses will cost it up to £5m.The online food delivery company is the latest of many to announce it has deployed incentives to hire new staff amid chronic shortages of lorry drivers across the UK.Its statement comes after the government confirmed plans to speed up HGV driving tests. In a trading statement, Ocado said the "Rising costs of labour" particularly for LGV and delivery drivers, represented "An increasingly important issue for the industry that may result in up to £5m of impact to full year numbers", due to higher hourly rates and new sign-on bonuses. The scarcity of lorry drivers has been a long-term problem the coronavirus pandemic, Brexit and tax changes have exacerbated the issue further, which has affected supply chains. Ocado is the latest supermarket to offering perks to lorry drivers. The government said on Friday up to 50,000 more HGV driving tests would be made available each year by shortening the application process and tests.

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