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Is Cycle2Work Revolutionizing All Over Again in 2022

The 1999 scheme has evolved over the years to bring environmental betterment. So let’s see what Cycle2Work has to do with it. 

A new government scheme could be the revolutionary push Cycle2Work needs to gain further ground in the UK. There are many initiatives currently in place to encourage cycling, but Cycle2Work has been one of the most effective since its inception in 1999. With a focus on getting people out of their cars and onto bikes, the scheme has helped thousands of Brits get active and reduce their carbon footprint.

However, Cycle2Work could be set for an even more significant boost if the government’s new plans go ahead. As reported by Cycling Weekly, the Department for Transport is considering making e-bikes more affordable by increasing the maximum value a bike can be worth under Cycle2Work from £1,000 to £3,000. This would mean that e-bikes will become much cheaper to buy through the scheme than they are at present. The change comes as part of a broader effort to tackle congestion, air pollution, and obesity in Britain’s towns and cities. E-bikes have been identified as one of the key ways to achieve this, but unfortunately, they are too expensive for many people looking to switch from cars or public transport.

Cycle2Work Scheme

Cycle2Work is a cycle-purchase program designed to encourage people to take up cycling and use it as a means of transport. It was introduced in the UK in 1999, but it has grown in size and popularity here over the last 12 years.

It's one of the most popular schemes used by employers, with more than 40% of them offering this scheme to their employees. More than 880,000 people have taken part in the scheme since it was introduced.

What is the Cycle2Work Scheme?

The idea is that you buy a bike through your employer. They will pay for it and then deduct the cost from your wages over an agreed period - usually 12 months.

The advantage for employers is that they save money on income tax and National Insurance on the amount you save on your new bike. There are also savings for you from not having to pay tax or National Insurance on the amount you save on that bike.

To be more precise, the scheme works by allowing you to buy a bike and accessories, up to the value of £1,000, tax-free. The bike must cost at least £100, and the remaining amount can be used for accessories such as a helmet, lock, and lights.

You pay for your bike and equipment through monthly salary sacrifice deductions from your pre-tax salary, which could mean a saving of up to 42%, depending on your tax band.

For example: As a basic rate taxpayer (20%), paying £200 per month over 12 months would save £480 (£200 x 12 x 20%). As there is no PAYE tax or National insurance deducted from your salary when you are paying for your cycle, your take-home pay will remain the same.

As an additional rate taxpayer (45%), paying £200 per month over 12 months would save £1,080 (£200 x 12 x 45%). Again, as there is no PAYE tax or National insurance deducted from your salary when you are paying for your cycle, your take-home pay will remain the same.

The Cycle to Work Scheme is an excellent way of making significant savings on bikes and accessories. You can save up to 42% on the cost of a new bike and accessories by spreading the cost through salary sacrifice.

A study of data from the Bike Buyer dataset found evidence that ridership has increased in London. It appears that the Cycle2Work scheme has benefited not only people who bought new bikes but also those who purchased second-hand bikes and existing bike owners.

The Cycle2Work scheme contributes to increased bike sales in London and ridership. The scheme's benefits are now being felt by people buying second-hand bikes.

Overall, we can conclude that the Cycle2Work scheme is beneficial to everyone, regardless of whether they already own a bike.

The Cycle2Work scheme is a government initiative that allows employees in the UK to buy a bike, bike repair, or any safety equipment (helmets, lights, etc.) tax-free through salary sacrifice. This means that your gross salary is reduced by the cost of the bike and equipment, with no tax or National Insurance contributions payable on that amount.


You choose your bike from the local bike shops in London, and they will supply it to your employer, who will then loan it to you for an agreed period of time. At the end of the hire period, which usually lasts between 12-18 months but can be longer, you purchase it from us at a significantly reduced price.

The bike will be delivered to you directly so that you don’t have any upfront costs. It is just like a car lease or mobile phone contract!

Posted on 9th Apr 2022

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