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Driver pay levels are up by a median 4.5% - ahead of inflation, the rest of the industry and the whole economy. The findings are revealed in the latest report on pay and conditions in the sector from pay analyst Incomes Data Services (IDS), in conjunction with the Road Haulage Association (RHA). IDS says the high settlement level for drivers is "due to efforts to resolve recruitment and retention issues and to compensate drivers for loss of earnings through restrictions on working time".

RHA head of employment Ruth Pott agrees that settlement levels are high to address driver demand. "I've seen some firms paying 5%, 6%, even up to 15% because they've looked at the demand," she says. Pay settlement levels for the industry hit a median 3.9%, up from 3.2% in the previous year's report, while those for the whole economy were at 3.5%.

Pott says there are pockets where driver shortages are apparent, with IDS identifying Yorkshire and Humberside and the South-West as areas particularly affected. But its survey finds that the proportion of its 87 respondents, employing 18,644 workers, experiencing recruitment and retention difficulties has fallen to less than one-third, from 37% the previous year.

However, 14% report the situation as being worse than a year ago, and the top two factors affecting driver turnover are cited as low pay rates and difficult working conditions. IDS also reveals that almost a quarter of respondents employ female drivers, double that  found in last year's survey. The full IDS report, Pay in road transport and distribution 2007/08, costs £295. To order call 0845 6009355 or visit www.incomesdataservices.co.uk.