Cycle to Work Scheme

The Cycle to Work Scheme: Encouraging Commuting on Two Wheels

Cycling is becoming an increasingly popular way of commuting to work. Not only is it a great way to stay fit and reduce environmental impact, it is also an excellent alternative to crowded public transport and congested roads.

To promote cycling as a viable commuting option, the UK government introduced the Cycle to Work scheme.

What is the Cycle to Work scheme?

The Cycle to Work scheme is a government initiative that encourages employees to cycle to work by offering substantial savings on the purchase of a bicycle and cycling accessories. The aim of the scheme is to make it easier and more affordable for individuals to start cycling to work regularly.

How does it work?

The Cycle to Work scheme operates through a salary sacrifice arrangement, where an employee agrees to give up a portion of their salary in exchange for a bicycle and any necessary equipment. The employer then provides the employee with the selected bicycle and accessories, which are considered a "benefit in kind".

The cost of the bicycle and equipment is deducted from the employee's gross salary, reducing the amount of income tax and National Insurance contributions they have to pay. This means that employees can save up to 42% on the cost of a new bike.

Insurance for bicycles bought via the Cycle to Work scheme

When participating in the Cycle to Work scheme, it's important to consider obtaining bicycle insurance to protect your bike against theft or damage. While the scheme itself doesn't provide insurance coverage, CoverCloud Bicycle Insurance offer policies tailored to cyclists participating in the Cycle to Work scheme.

Benefits for employees

The Cycle to Work scheme offers numerous advantages for employees, including:

1. Cost Savings: Employees can save up to 42% on the cost of a new bicycle. It significantly reduces the price barrier to purchasing a quality bike, which can be a significant investment.

2. Health and Well-being: Cycling is an excellent form of exercise that improves cardiovascular fitness, strengthens muscles, and helps with weight management. Regular exercise can also boost mental well-being, reducing stress levels and improving overall productivity.

3. Reduced Carbon Footprint: By choosing to commute by bike instead of a car, employees can significantly reduce their carbon footprint. Cycling produces zero emissions and is a sustainable mode of transport, contributing to a cleaner and greener environment.

4. Avoiding Traffic and Congestion: Commuting by bike allows employees to bypass traffic jams and crowded public transport, saving time, and reducing stress levels. It also gives individuals more control over their journey, as they are not dependent on train or bus schedules.

Benefits for employers

The Cycle to Work scheme also brings advantages to employers, including:

1. Healthier and More Productive Workforce: Employers who actively promote cycling can benefit from having healthier and more active employees. Regular exercise has been shown to improve mental alertness, concentration, and productivity.

2. Reduced Parking Costs: Encouraging employees to cycle to work reduces the demand for parking spaces, which can be costly for employers. This can free up valuable parking spaces for visitors or customers, improving the overall efficiency of the workplace.

3. Green Credentials: By actively participating in the Cycle to Work scheme, employers can showcase their commitment to sustainability and reducing their carbon footprint. This can enhance their reputation as an environmentally responsible company.