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news
Commuter cyclistCycle to Work scheme sees record uptake for second year in a row
New figures reveal that a record number of people took advantage of the Cycle to Work scheme in 2014. An 11.6 per cent increase in uptake compared to 2013 saw 183,423 people getting tax-free bikes via members of the Cycle to Work Alliance. Even more striking is that 2013 was in itself a record year with a 16.4 per cent increase compared to 2012.
While the Cycle to Work Scheme has been an undoubted success in terms of selling bikes there are those who question what proportion of those sales have resulted in new cycle commuters - citing the scheme's popularity amongst existing cyclists. All that can be said is that both side's arguments rest on partial or anecdotal evidence and that cycle to work schemes have certainly helped fuel the British public's increasing fondness for cycling.
Employees who participate in the Cycle to Work scheme save up to 40 per cent of the total cost of a new through paying for it from their pre-tax income.
The Cycle to Work Alliance – a group of leading providers of the scheme – say that the figures highlight a continuing trend for people to choose to commute by bike.
Steve Edgell, Director of Cycle Solutions and Chair of the Cycle to Work Alliance said:
“It is clear that the cycle to work scheme is a key mechanism for delivering on the Government’s health and sustainable transport objectives, such as those set out in the draft Cycling Delivery Plan. The Alliance is obviously delighted in the part it can play in driving these positive behaviours, with 2014’s figures showing that the scheme is on an upward trajectory and more people than ever across the country taking up cycling.”
Edgell added that while the figures represented excellent news, it was important that the scheme’s ongoing success was ensured through continued governmental commitment to cycling.
“Alongside efforts to improve access to equipment and improve safety, the Alliance believes central and local government must work together to promote the benefits of cycling to local employers and the wider community. That way, we can make sure that as many people as possible are getting on their bikes.”
Research carried out last year by Cyclescheme.co.uk claimed that two million new cycle commuters were set to take to the roads that spring. Reasons cited included the frustrations and unreliability of public transport and congestion on the roads.
Alex has written for more cricket publications than the rest of the road.cc team combined. Despite the apparent evidence of this picture, he doesn't especially like cake.
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19 comments
my original comment was a little trite but let's face it, it is symptomatic of the screwed up tax system in the first place. Why offer a narrow benefit on a taxed item (VAT on bicycles) that you can then mitigate by offering income tax relief on purchase which is narrowly focused and will favour the employed/wealthier end of the population - catch my drift ? Perhaps the best way would be to not tax the damn thing in the first place
an old company of mine (a big multi national, which supported similar schemes in Holland etc) said they did not do it as too much 'paperwork'. Someone proved to them it is exactly 2 mins extra work per applicant, but head so stuck in the sand about it.
and the sad part is there are companies in central london which offer no cycle to work option to its employees for the reason that cycling is not safe. There is small merit in the argument but the choice should be left to the employees. This scheme will not stop someone from cycling but will only help those who are already cycling or want to start badly!
*plain vanilla tax avoidance*
Chortle - guilty as charged !
but exactly it is and people need to understand that it is, and it says something I think about how we view commute cycling when the only way to encourage more people to take it up, is to offer interest free loans with a tax discount,so they can wander off and spend upto £1000 on a bike.
that seems to completely reinforce the stereotype that cycling is expensive, whereas the bigger blocker in the workplace (even before we tackle things like the safer infrastructure to get there) are the facilities, are there secure bike racks, are there places you can store kit, are there showers.
because I know colleagues who have had their bikes stolen by bike thieves when theyve left bikes in office bike racks even at a workplace that is completely fenced off, has no public access, has 24/7 security and cctv.
oh and to complete the anectdote survey, I alread commute by bike to work, but when my workplace sorts its cycle2work scheme out Ill certainly be taking advantage of it for n+1
Oh and mine was an n+1 purchase. Have never cycled to work.
A fella in work was asking my advice on what bike for him yesterday. He is going down this route ctws but he said that its 2k max now. First I've heard. Has it gone up now? I recommended a specialized roubaix. Did originally recommend the canyon endurance 9.0 but then realised out wouldn't be available on the scheme.
No, I was looking into it a week or so ago and the limit was definitely £1000.
The limit of £1000 is set by the consumer credit agreement set up to cover Cycle to Work Schemes. If your employer wants to offer more they can set up their own agreement to up that limit. My employer has one that allows us up to £2000.
I work for a major bank and our limit is £2000 now. Put that towards a cervelo r3 and effectively saved I've £800. I think if they just renamed the scheme and dropped the work reference they may get more uptake. It's long gone that that was a prerequisite.
What is wrong with people in employment being able to buy additional bikes?
the real issue is that under cycle2work terms, I am only able to buy a bike upto £1000 and only if I (and only
ride it to work and back. Also for me that scheme/incentive is only open for about one or two months a year. Last year it was August/September.
Why shouldn't I be able to buy bicycles for the whole family on the cycle2work scheme? If they're then being actively used that's a good thing no?
My employer also runs a salary sacrifice scheme with tax savings for personal lease cars. That runs all year round. No stipulation there that only I can use the car and only for going to work.
Gazza, I think you and I may work for the same business. I've often wondered why the C2W was only available once/twice a year and the motor finance available all the year round. Should be the other way round especially when a lot of our sites do not have car parking.
NHS hospital trust in NE England, so possibly same umbrella org, but different trusts.
Very frustrating that the NHS is not taking a lead on all of this
Certainly sounds a familiar story. Although lack of secure cycle parking at my site means I can get away with keeping the bike in the office. I also have a very accommodating and understanding manager and department generally
A friend of mine just moved house, which makes a regular commute to work realistic.
She approached her employer about cycle to work, but was told they don't participate in the scheme and on looking around her place of work she realised there was very little cycle parking provision. Given that she is a teacher at a secondary school level academy, I was pretty shocked.
I don't have the option of a cycle to work scheme. My employer doesn't offer it, so I just have to pay full price for my bike
even if only a tiny fraction of people who get the bikes are new to cycling and decide to commute to work only a few days a week that's better than it was before. Hopefully one day more and more people will choose to cycle and the die hard drivers will turn around and realise they are suddenly in the minority in the workplace, it's a long way off, but maybe one day (I hope before we've all choked to death on exhaust fumes), and schemes like this don't really cost anything do they.
I just wish the government would just drop VAT on bikes, that way everyone can benefit from cheaper bikes and not just those lucky ones who's work offers the cycle to work schemes.
I bought a road bike on the cycle to work scheme and have never cycled to work in my life. Also, if you add up all the payments plus the final 'it's mine' payment and it's absolutely no cheaper than paying full whack in the first place.
I won't be doing it again.
If you have to pay the final "it's mine" payment your employers are doing it wrong. They should just retain ownership for the next 5 years when that payment will be £0. Alternatively they can gift you the bike as a taxable benefit and you will just be liable for the tax on the final payment. My company (or their agents) take the first approach meaning I saved 42% on my bike, and paid for it in 12 interest free monthly installments. It's just about the best way to buy a bike there is, providing the bike you wants fits into the budget it gives you.
I'll definitely be doing it again next year.
Hmmmm....
The majority of bikes bought on the CtW scheme in my experience are bought by existing cyclists as a handy way to get another bike cheaper.
I'll see your anecdotal evidence and raise it with my own. Where I work 80% of the people who bought bikes on the scheme this year were new to cycling and half of those are now cycling commuters. The pre-existing cyclists all bought their n+1s last year.