Approaching the 25th Anniversary of the Cycle to Work scheme, the question being asked is, has it been successful?
Introduced in the Finance Act of 1999, (The Green Transport Plan) over 200,000 Employers, have signed up to the Scheme and it is estimated that well over 1,000,000 people across the UK have saved money, on a bike and/or accessories for use when cycling to work.
The Rules, were initially quite complicated, but they have now been eased, to make the Scheme far more attractive.
As a Salary Sacrifice Scheme, the cost of the equipment is recovered, by the Employer, from the Employees Gross Salary, thereby the employee will be paying less Tax and National Insurance.
Depending on your Tax Band, savings up to 48% on the cost of the bike could be achieved. For Basic-Rate Taxpayers, this works out around 32% of the cost.
Everybody agrees that Cycling is good for you and can be very beneficial to your lifestyle.
Cycling can help you maintain a healthy weight, and as a low-impact exercise, it is easier on your joints compared to high-impact aerobic activities like running.
Cycling can boost your mood, improving the symptoms of some mental health conditions like depression and anxiety.
With the recent Cost of Living increases, the frightening rise in Gas & Electricity prices, petrol price increases, rising transport costs, and the efforts made by a number of local authorities to increase the availability of ‘Low Traffic Neighbourhoods’ (LTNs) and the provision of many more miles of cycle lanes, the advantages of ‘getting on your bike’ are many.
Recent research has looked at the numbers, and tried to quantify the areas of the country where the Cycle to Work Scheme has been most successful.
London comes out top, with the North East having the lowest score.
Here in the Northwest, we came 6th out of 9 English Regions.
Full details of the research are HERE.
While we all accept the benefits of using a bike for your daily commute, there are a couple of downsides.
The first is, of course, the appalling level of driving, with some drivers seeing cyclists as ‘fair game’ in harassing them with ‘close passes’.
And the second big problem is arriving at work all sweaty after a strenuous ride. Many employers do help with showers and/or changing rooms.
Recently a colleague of mine, bought a new bike, via the Cycle to Work Scheme.
His commute to work was pretty short, however, the Scheme was available, and the result was a nice shiny new Gravel Bike from Evans Cycles.
The whole experience was pretty painless, he’s managed to save 30% on the cost of the bike, and the overall cost is spread over 12 months.
Not only does he have an easy commute to work, but he is now all set for the new riding season.
So, what’s not to like?
If you are employed and receive your salary via the PAYE system, ask your employer if they have signed up to the scheme, And if not, suggest that they do so, and encourage their employees ‘take to the road.
#UKCyclingToWork
Research: https://www.planetx.co.uk/news/articles/q/date/2023/02/23/cycle-to-work-scheme-is-it-worth-it