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Pedalling Towards a Healthier Future: The Cycle to Work Scheme in the UK

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In recent years, the UK has seen a surge in interest in cycling, driven by two motivations of improving health and reducing carbon emissions. One of the most influential initiatives supporting this trend is the Cycle to Work Scheme. Introduced in 1999, this government-backed program incentivizes employees through tax savings to commute to work by bicycle and promotes sustainable travel options. This article explores the scheme’s mechanics, benefits, and its broader impact on society.

How the scheme works

The Cycle to Work Scheme operates on a simple premise: it allows employees to purchase a bike and safety equipment through their employer, who fronts the cost and recoups it through a salary sacrifice arrangement. Here’s a step-by-step breakdown of how it works:


  • Employer participation: Employers must first sign up for the scheme, which involves partnering with a scheme provider. Popular providers include Cycle Scheme, Bike2Work Scheme, and Green Commute Initiative.
  • Choosing equipment: Employees can choose a bike and eligible accessories, such as helmets, locks, and lights, up to a specified limit. Traditionally, this limit was set at £1,000, but recent changes have allowed for higher limits to include more expensive e-bikes and safety gear.
  • Salary sacrifice agreement: The cost of the bike and equipment is deducted from the employee’s gross salary over a set period, usually 12 to 18 months. This reduces their taxable income, offering tax and National Insurance savings. If the employee leaves their job before the full amount is deducted from their salary- the remaining sum will be claimed from their final wages.
  • Ownership transfer: At the end of the salary sacrifice period, employees can opt to extend the hire agreement, return the bike, or purchase it for a fair market value, often set at a fraction of the original price.

Financial benefits

One of the primary attractions of the Cycle to Work Scheme is the significant financial savings it offers. By reducing the employee’s gross income, the scheme lowers the amount of income tax and National Insurance contributions. Depending on the employee’s tax bracket, savings can range from 32% to 42% on the cost of the bike and equipment. For example, a higher-rate taxpayer could save up to £420 on a £1,000 bike package. Additional savings are made by replacing the previous method of transport with cycling- so no more bus tickets or fuel costs.

Health improvements

Cycling to work has clear health benefits, too. Regular physical activity helps reduce the risk of chronic diseases such as heart disease, stroke, type 2 diabetes, and certain cancers. It also promotes mental well-being, reducing stress and anxiety levels. The NHS recommends at least 150 minutes of moderate-intensity aerobic activity each week, and cycling to work can help achieve this target. Moreover, as a low-impact exercise, cycling is suitable for a wide range of ages and fitness levels.

Environmental impact

The Cycle to Work Scheme also plays a crucial role in addressing environmental concerns. Transportation is a significant source of greenhouse gas emissions in the UK, with cars accounting for a large proportion of these emissions. By encouraging cycling, the scheme helps reduce traffic congestion and pollution.

  • Carbon emissions reduction: Cycling is a zero-emission mode of transport. According to Sustrans, if just 10% of journeys in the UK were made by bike, it could cut CO2 emissions by approximately 750,000 tonnes each year. This would be a significant step towards meeting the UK’s climate goals, including the target of net-zero emissions by 2050.
  • Reduced traffic congestion: In addition to lowering emissions, cycling reduces traffic congestion. Fewer cars on the road mean less traffic, which can lead to shorter commute times for everyone, not just cyclists. This can improve air quality and make urban environments more pleasant and liveable.
  • Broader social impact: Beyond individual benefits, the Cycle to Work Scheme has broader social implications. It supports local economies, enhances urban infrastructure, and promotes a culture of sustainability.
  • Economic boost to local bike shops: The scheme has been a boon for local bike shops. By driving demand for bicycles and accessories, it supports small businesses and stimulates the local economy. Many bike shops have become accredited providers under the scheme, allowing them to benefit directly from increased sales.
  • Improved urban infrastructure: The growing popularity of cycling has prompted investment in better cycling infrastructure. Local authorities are increasingly recognizing the need for safe and convenient cycling routes. This has led to the development of bike lanes, cycle parking, and bike-sharing programs. Improved infrastructure not only makes cycling safer but also more appealing to a broader population.
  • Cultural shift: Perhaps one of the most significant impacts of the Cycle to Work Scheme is its contribution to a cultural shift towards sustainable living. As more people adopt cycling, it becomes a normalized mode of transport, reducing reliance on cars. This cultural shift can have lasting effects, encouraging future generations to consider cycling as a viable and preferred mode of transport.

Challenges and criticisms

Despite its many benefits, the Cycle to Work Scheme is not without challenges and criticisms.

  • Accessibility and inclusivity: One criticism is that the scheme may not be accessible to everyone. For instance, the salary sacrifice arrangement may not be feasible for low-income workers who cannot afford a temporary reduction in their take-home pay. If the salary sacrifice takes the employee’s pay below the national minimum wage, they cannot participate in it. Additionally, not all employers participate in the scheme, limiting its reach.
  • Infrastructure gaps: While cycling infrastructure has improved, it remains unevenly distributed across the country. Urban areas tend to have better facilities, while rural areas may lack safe cycling routes. This can deter potential cyclists who are concerned about safety.
  • Environmental footprint of e-bikes: With the scheme’s expansion to include e-bikes, there is also concern about their environmental footprint. E-bikes, while reducing emissions compared to cars, still require batteries that have environmental costs in terms of production and disposal.
  • Weather: Last, but not least- living in the UK, cyclists can be limited by the weather conditions and so, cycling will most likely not be the chosen transport to work all 12 months of the year.


The Cycle to Work Scheme is a vital initiative that promotes healthier lifestyles, reduces environmental impact, and fosters a culture of sustainability. By making cycling more affordable and accessible, it encourages more people to consider cycling as a viable commuting option. While there are challenges to address, particularly in terms of accessibility and infrastructure, the scheme’s overall impact has been profoundly positive. As the UK continues to strive towards its health and environmental goals, the Cycle to Work Scheme stands out as a key component in the journey towards a greener, healthier future.

At New World Business Centre, we have the perfect location for those cycling to work- the Bath- Bristol Cycle Track is just outside the centre, there is a bike shed for secure parking of your bike and a shower facility.