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Telegraph claims “rich, Lycra-clad cyclists tearing through red lights” are riding “hugely expensive” bikes paid for by taxpayer in “nasty” tirade against Cycle to Work scheme

The newspaper’s head of money – in what he claimed “isn’t an anti-cyclist article” – argued that Cycle to Work is being “abused” by “middle-aged men in Lycra earning six figures” to buy “fancy new toys”

The Telegraph, which in the past year has not been shy when it comes to publishing critical and often questionable stories about cycling, has once again been accused of promoting a “nasty, culture wars” agenda against cyclists, after the newspaper’s head of money claimed this morning that “middle-aged men in Lycra earning six figures” were “shamelessly” exploiting the government’s Cycle to Work scheme to buy “fancy new toys”.

In the article, titled ‘Rich cyclists are getting brand new bikes – courtesy of you, the taxpayer’, Ben Wilkinson argued that since the Cycle to Work scheme was revamped six years ago, enabling employers to offer bikes worth over £1,000, it is now being “routinely abused by wealthy cyclists who have no intention of using their expensive gift from the taxpayer on their commute”.

Introduced in 1999, the UK government’s Cycle to Work employee benefit scheme offers a tax-friendly initiative which enables people to buy a bike and cycling accessories through salary sacrifice.

Effectively, the initiatives see employees ‘loan’ a bike from their employer tax-free, initially for a year. That loan can then be extended, with employees able to eventually buy the bike at a nominal price, calculated factoring in the bike’s depreciated value over time.

During its first 20 years, tax-free purchases using Cycle to Work were nominally capped at £1,000 (though some providers did not impose this limit and former cycling minister Michael Ellis pointed out that the £1,000 ceiling never officially existed for larger employers registered with the Financial Conduct Authority).

Nevertheless, in 2019, the Conservative government announced a revamp of the Cycle to Work scheme, making it easier for bikes worth over £1,000 to be purchased using the initiative, as part of a drive to “increase the use of e-bikes to help tackle congestion, speed up commutes, and cut travel costs”.

Cyclists in London talking in cycle lane Cyclists in London talking in cycle lane (credit: Simon MacMichael)

However, six years on, the Telegraph’s Wilkinson has called for another rethink of the scheme, arguing that “commuters simply do not need a bike worth more than £1,000”.

“The next time you see a Lycra-clad cyclist tearing through a red light, consider this: their hugely expensive bicycle was likely paid for by you, the taxpayer,” Wilkinson’s column begins.

But despite that provocative opening paragraph, the journalist maintained that “this isn’t an anti-cyclist article”.

“I own three bikes, none of which the taxpayer helped pay for. The world would be a better, and healthier place, if more of us rode bicycles,” he continued.

“Cyclists should stick to road rules like anyone else, and any suggestion that cyclists should pay road tax is moronic. Roads are maintained using money from all taxes, and vehicle excise duty is levied on emissions.

“However, there are gaping holes in this tax break that mean your money is not being spent as it should be.”

> Telegraph journalists told "check your research" after front page claims cyclists hit 52mph chasing London Strava segments... despite that being faster than Olympic track cyclists

According to Wilkinson, since the cap was lifted in 2019, the cost to taxpayers has been £615m, the writer also noting a “spike in demand” for the scheme in 2020 and 2021, which he links to increased leisure time during the Covid-era lockdowns.

While admitting that more expensive e-bikes should be subject to a higher ceiling, Wilkinson argued: “There can be no justification for asking the taxpayer to give a dentist earning £200,000 a £4,200 discount on a £10,000 bike. My commuter bike cost £300 and has saved me thousands in Tube fares.”

He continued: “I suspect Whitehall and the City are full of top earners who have exploited this scheme to buy an expensive bike that they would not dare to bring into London for fear of it being stolen.

“And there’s no doubt that some have used it to drop their incomes below £100,000 so they can still continue to qualify for tax-free childcare.”

> “Unfair” Cycle to Work scheme “problems” need to be addressed, admits government minister

The financial journalist also pointed to a report published by cycling and walking charity Sustrans in September, which found that 38 per cent of people in the UK on low incomes or in unemployment (or around 1.9 million people) are currently priced out of buying a bike due to the high costs and lack of discounts available.

Sustrans noted that, in its current guise, Cycle to Work excludes anyone who would earn less than the minimum wage of £17,000 a year once the scheme’s salary deductions are taken into account, as well as those who are not in work, self-employed, or work for a non-participating employer.

The consequence of the scheme’s minimum entry point, the charity pointed out, is that just 30 per cent of people on a low income or not in employment have access to a cycle. On the other hand, data from Sustrans’ Walking and Cycling Index found that 59 per cent of people in professional occupations have access to a bike.

The report prompted Simon Lightwood, Labour’s Parliamentary Under-Secretary of State for Transport, to admit that the government “absolutely recognises” there are “problems” with the current Cycle to Work scheme.

Cyclists in London male and female in cycle laneCyclists in London male and female in cycle lane (credit: Simon MacMichael)

In his article in the Telegraph today, Wilkinson concluded: “It’s a good example of a policy that came with good intentions that has been allowed to mutate into something it was never supposed to be.

“Cycle to Work should not be scrapped, but ministers should consider if taxpayer cash should really be going towards fancy new toys for middle-aged men in Lycra earning six figures.”

However, despite his insistence that his criticism of Cycle to Work didn’t amount to an “anti-cyclist article”, Wilkinson’s depiction of “Lycra-clad” cyclists “tearing through red lights” has been resoundingly criticised by cyclists on social media.

“I couldn’t read it behind the paywall, I could only see the first sentence. But as that mentioned Lycra and red lights, I knew I didn’t want or need to read any more,” Christopher Day wrote in response to the Telegraph’s story.

Referring to Wilkinson’s assertions that expensive bikes are being paid by “the taxpayer”, Adespoto said: “Because cyclists and taxpayers are distinct demographics? It’s a nasty culture-wars article from a petro-industrialist Tory shit rag.”

“‘Now, let’s be clear. This isn’t an anti-cyclist article’. It absolutely is,” added Wiebes.

> "People won't bother reading the truth, the damage is done": Cyclists frustrated Telegraph newspaper not required to put "52mph cyclists creating death traps" correction on front page like original headline

Of course, as noted above, this isn’t the first time that the Telegraph has been criticised for its attitude towards cyclists.

In August, press regulator IPSO (the Independent Press Standards Organisation) ruled that the newspaper was in breach of its Editors’ Code for an inaccurate front page story claiming cyclists are riding at 52mph in London’s 20mph zones while chasing Strava segments.

Telegraph front page/ cyclists in Richmond ParkTelegraph front page/ cyclists in Richmond Park (credit: Simon MacMichael/Telegraph)

The headline appeared on the newspaper’s front page last May and told readers “Lycra lout cyclists are creating death traps” and riding at 52mph in London, a bizarre claim that turned out to be the result of dodgy GPS data taken from Strava that would, if true, have meant that people are cycling through London’s streets at speeds faster than what Olympic track sprinters hit in the velodrome.

Unsurprisingly, the story was much criticised and ridiculed, Active Travel Commissioner Chris Boardman calling it “bonkers” and the IPSO receiving 96 complaints.

> "Mums, dads, sons and daughters being labelled as killers. It’s just got to stop": Chris Boardman comments on Telegraph '52mph in a 20mph zone' article as it emerges co-author is former BBC fact-checker

However, despite the IPSO’s intervention, which described the error as “significant”, many expressed frustration that the newspaper was not required to publish a front-page correction, as the regulator instead accepted that the original acknowledgement made six days after publication and hidden away in the Telegraph’s ‘Corrections and Clarifications column’ was sufficient.

But just two months after the IPSO’s intervention, the Telegraph was again accused of manipulating and blurring photos of cyclists riding at 15mph through Regent’s Park to make it look like they were travelling at faster speeds than they were, for a column titled ‘Let’s get tough on the scourge of rogue cyclists’.

And later in November, the Telegraph published information from a “dossier of collision data” from The Royal Parks in London and claimed it revealed “the full threat posed to pedestrians by dangerous and illegal cycling in the country's most famous parks”.

In the article, titled ‘How rogue cyclists in London’s parks have knocked down children and the elderly’, the Telegraph published information from the dossier and said it referenced “speeding” and “aggressive” cyclists being involved in hit and runs, ignoring zebra crossings, travelling on illegal bikes, and hitting pedestrians so hard they are “catapulted into the air”.

After obtaining a PhD, lecturing, and hosting a history podcast at Queen’s University Belfast, Ryan joined road.cc in December 2021 and since then has kept the site’s readers and listeners informed and enthralled (well at least occasionally) on news, the live blog, and the road.cc Podcast. After boarding a wrong bus at the world championships and ruining a good pair of jeans at the cyclocross, he now serves as road.cc’s senior news writer. Before his foray into cycling journalism, he wallowed in the equally pitiless world of academia, where he wrote a book about Victorian politics and droned on about cycling and bikes to classes of bored students (while taking every chance he could get to talk about cycling in print or on the radio). He can be found riding his bike very slowly around the narrow, scenic country lanes of Co. Down.

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118 comments

Avatar
Smoggysteve | 3 weeks ago
7 likes

This just highlights one of the things I hate about modern UK journalism to its absoloute core. 

Of course you will get a tiny minority who figure out a way to exploit a perk or subsidy. It happens all over the place. Sure there are people who commit welfare fraud, or tax avoidance etc etc, they are the few who are sensationalised and the fact that the service is used by millions fairly and honestly are painted as all being a bunch of criminals or scroungers etc. Askthis same journalist about financial perks given to MPs or bankers, lawyers etc who earn well over the median and what they think about it, they will most likely shrug and ignore it. I couldnt care less if 1 or 2 rich people abuse the system to get themselves a shiny new bike costing 5 figures, I care that for every one of them, there are thousands of others who get a bike for a modest sum that makes a world of difference to their lives. 

 

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BikingBud | 3 weeks ago
3 likes

I wanted to respond to the article thanking him personally for susbsidising not only the 4 bikes we have bought on the CTW scheme but also for personally paying for the multiple gold-plated, risk-free, constantly inflating DB pensions we have coming into payment over the next few years.

To also explain how we were really looking forward to having a choice of expensive machines, (bestowed with various unecesasary gadgets, widgets and bling covered by CTW to ensure we got maximum benefit) to ride as we put on our sharp lycra before going out onto the public highway riding two abreast and dominating the middle of the road, ensuring none shall pass.

And also ensuring he was aware that we would be pullling up at the trendy cafe after only a few miles to sit outside smugly admiring our achievements as we sip soya lattes and eat carrot cake, or parhaps as we feel like splurging a bit maybe lime and pistachio cake, toasting the travails of Mr Wilkinson esq for his personal contriubtion to our wonderful life and his efforts to incite his intellectually challanged readers into a frenzy of spittle. My how we chuckle wink

But I couldn''t be arsed setting up an account!

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Robert Hardy | 3 weeks ago
4 likes

Raising the maximum price limit a few years ago may be providing an avenue for abuse but I now see more and more parents delivering their children to nurseries and schools in cargo bikes of various descriptions before work, those cost considerably more than the old £1000 limit. Perhaps rather than the middleman heavy current system we should just allow zero VAT rates on such bikes.

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headingley | 2 weeks ago
1 like

Who actually cares if "bike to work" bikes aren't actually used for daily commuting ? (Apart from The Telegraph, of course) The fact that you can get a bike and get some tax relief on it simplygets more bike out there. The tax relief is nothing compared to the massive (multi-million £££) subsidies (by tax relief and allowances) given to buyers of electric cars, for example. 

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stonojnr replied to headingley | 2 weeks ago
0 likes

Well the taxman does, because at heart it's a tax relief scheme and just like company cars, benefits in kind, gifts, ir35 etc etc systematic abuse of a tax relief system can often lead to big sums of money disappearing out of government coffers as things don't go as they intended.

Plus when the scheme originally came in the manufacturers/bike shops all used the limits on the scheme to boost their pricing models. And the 1k bike was born, so you'd didn't get more bike, you got the same bike paid more for it, then got tax relief on it, broadly ended up outturn in the same place money wise.

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mdavidford replied to stonojnr | 2 weeks ago
1 like

stonojnr wrote:

Well the taxman does

They really don't, though. They might say they do, but in reality the amount of money involved is a rounding error in the tax budget, and not worth the effort it would take to police.

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biking59boomer | 3 weeks ago
2 likes

My workplace is a one of the biggest users of the c2w scheme in our city, and I can tell you now that this article in no way reflects the nature of those using it. Most of those who use it now are in the 18-40 age range. Older cyclists like me are riding bikes they bought years ago such as my 20 year-old Dawes Karakum. Furthermore, no-one turns up in lycra. It's either ordinary clothing or shorts/tracksuit bottoms/baggies with a t-shirt and cycling jacket and keep a change of clothes in work.

This is nothing more than a Tory rag doing it's usual scapegoating trick. It's either minorities, asylum seekers or cyclists. Reminds me of a story I heard of a Rabbi in Czarist Russia who was confronted by a drunken Cossack. "The whole worlds in a mess!" he shouted "and it's all the Jews' fault!" "And the cyclists" The Rabbi replied. "Why the cyclists?" asked the Cossack, puzzled at his reply. "Why the Jews?" the Rabbi replied.

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Mr Blackbird | 3 weeks ago
4 likes

How about this for negative stereotyping :
"Beige, elasticated waist trouser-clad Daily Telegraph reader, wearing brown shoes that look like Tesco Cornish Pasties and a blue and yellow rainproof jacket, ambles slowly across pelican crossing on the way to the Conservative Club.

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lesterama | 3 weeks ago
5 likes

If he had just said that the Cycle to Work scheme ain't fit for purpose, he would've been right. Rip-offs by the scheme operators; no scheme for the self-employed; bigger benefits to those paying the most tax. It needs an overhaul.

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rivitman | 3 weeks ago
1 like

I never thought I would ever see myself agreeing with the editorial stance of the Telegraph, bit I'm afraid here they have a very valid point. Simply, the scheme is being abused by being taken advantage of by buyers using it to access expensive bicycles. It would be naive of government not to recognise the fact.

My bigger beef though is with the excessive commission charges the scheme operators are charging bike shops for administering the process. This can be up to 15% of the gross (i.e. the fee includes the vat content of the bike) cost of the bike. So, the scheme operator will take up to £150 on the sale of a £1000 bicycle, which accounts for approximately 50% of the retailer's profit. This is simply unfair and I am sure led to the demise of some independent stores who have relied heavily on their BTW sales. Halfords commission charges are probably the worst.

The ACT seem to have gone very quiet on the subject. Surely, their purpose is to protect their member's interests and in this case it is to constantly lobby the government for a wholesale review of how the scheme is administered, because at the moment it simply is not fair to retailers.

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brooksby replied to rivitman | 3 weeks ago
2 likes

The place I got my new bike from on a C2W scheme were quite open about that and said that while they're more than happy to sell a bike being paid for on such a scheme, they would charge an extra £150 to cover the scheme fees. Given that they were explaining where the extra charge had come from, I was fine with paying it.

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rivitman replied to brooksby | 3 weeks ago
0 likes

brooksby wrote:

 they would charge an extra £150 to cover the scheme fees.

Most, if not all, scheme providers make it clear in their T&Cs that retailers are not allowed to surcharge to cover their scheme commission with the threat of exclusion.

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mark1a replied to rivitman | 3 weeks ago
2 likes

rivitman wrote:

My bigger beef though is with the excessive commission charges the scheme operators are charging bike shops for administering the process. This can be up to 15% of the gross (i.e. the fee includes the vat content of the bike) cost of the bike. So, the scheme operator will take up to £150 on the sale of a £1000 bicycle, which accounts for approximately 50% of the retailer's profit. This is simply unfair and I am sure led to the demise of some independent stores who have relied heavily on their BTW sales. Halfords commission charges are probably the worst.

A bike shop is under no obligation to sell a bike if they don't want to. If the deal doesn't work, the shop can say no. In my experience, many bike shops like the GCI scheme as it's 5% commission, and more than one LBS has remarked that it's bike scheme sales that keep the lights on during winter & spring months.

If the scheme didn't work for the retailers as you seem to think in the 26 years since it was introduced by Tony Blair's Labour government in 1999, then they would have all abstained or gone out of business by now. 

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rivitman replied to mark1a | 3 weeks ago
0 likes

mark1a wrote:

then they would have all abstained or gone out of business by now. 

The fact is that many have who have relied on the extra business BTW brings in but then find they cannot cover their overhead with significantly reduced gross margins.

I appreciate that other factors have conspired to make the viability of independent bike shops questionable, but BTW commission charges hasn't helped.

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polainm | 3 weeks ago
0 likes

https://www.theguardian.com/lifeandstyle/2022/aug/30/why-do-some-people-...

Successive governments' lack of engagement on this sends a clear enough signal. 

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Rome73 | 3 weeks ago
11 likes

that “commuters simply do not need a bike worth more than £1,000”.
 

what?? He should see the cars that drop the kids off at the private schools round my way. The wheel rims cost at least £1000 each. And the cars are the size of a small house.  And they clog up all the roads. And they pollute. 

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Bigtwin replied to Rome73 | 3 weeks ago
1 like

Nothing in your little rant addresses the fact that commuters simply do not need a bike worth more than £1,000.  C2W is a nonsense scheme.  I worked at a large London firm and the overriding use of it was the weathly getting a part free very expensive bike they didn't use for commuting ever, courtesy of the tax payer, and laughing at the idiocy of the scheme.

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The_Ewan replied to Bigtwin | 3 weeks ago
1 like

People don't 'need' the big expensive cars either, but people like nice things.

The point of C2W isn't to cover a 'need' at all, it's to encourage a change in behaviour, and offering well-paid people a trivial discount on a cheap bike isn't going to do that.

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lauren_chasey replied to Bigtwin | 3 weeks ago
3 likes

Except they do - I used the cycle to work scheme to buy an e-bike bike priced at £1100 (very much at the lower end of the usual price range for an e-bike) and it has been transformational for me. I cycle a 16 mile round trip into work, in an area with steep hills, and use it day-to-day for shopping in my local town centre. I have been able to get rid of my car. I couldn't do that on a standard bike. Btw my salary is in the mid 30s. 

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Bigtwin replied to lauren_chasey | 3 weeks ago
0 likes

Which makes the case perfectly for a sensible limit on the price of the C2W bike, and the relief on it.  No one on north of £100K a year needs to be able to buy an expotic carbon bike a £8K+ with a juicy tax break attached.  It's insane.

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The_Ewan replied to Bigtwin | 3 weeks ago
2 likes

But why worry if a few people do? It's just not a big deal.

And it's still serving an overall goal of getting more bikes sold and ridden - the C2W scheme isn't attempting to solve a problem of workers being unable to get to work, it's trying to encourage cycling.

And making the scheme more complicated, more limited, having to check what people are buying with it, or having to means-test it all adds to the costs, and it's often the case that making tax reliefs or benefits more tightly targetted winds up wasting more on admin than it saves.

More complexity for everyone just to avoid the handful of people who are in the market for a £10k superbike anyway is real sledgehammer/nut stuff - it's just not sensible policy.

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JMcL_Ireland replied to The_Ewan | 2 weeks ago
2 likes

Simplicity goes a long way. Means testing will make it expensive to administer and ultimately defeats the purpose in the same way that the Torygraph's demand for bike registration plates would. Yes there's some abuse almost certainly, but I'm sure the cost/benefit analysis has shown good outcomes overall (healthier populus, modal shift....)

Our system in Ireland is slightly different in that the amount allowable under the scheme is capped at €1250 for a normal bike and €1500 for an e-bike every 4 years. That doesn't limit what you can spend - if you want to buy an SL-8 you can pay the excess directly to the shop yourself at the time of purchase.

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stonojnr replied to The_Ewan | 2 weeks ago
0 likes

Because its probably not just a few people doing it.

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BBB | 3 weeks ago
8 likes

More anti-cycling bigotry from The Telegraph.
Perhaps Mr Wikinson would write an article about the social cost of cycling vs motoring. Spoiler alert - motoring is heavily subsidized by all the taxpayers.

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Vo2Maxi | 3 weeks ago
3 likes

Regardless of the gratuitously nasty tone which of course is typical of the Telegraph, Wilkinson has a point about the tax relief situation in question.
Yes, you can effectively buy yourself a £10K Pinarello with £4200 off the price if you're a higher rate taxpayer. And that's pretty obscene imo.
The easy way around that would be to make the tax relief a fixed rate of 20%, and to also introduce a cap over which you receive no tax relief. Say, £3K?
And then the govt could perhaps even find a way of using the saved money to assist low paid workers in buying a modest bike to commute on.
The current system is simply too blunt an instrument.

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Rome73 replied to Vo2Maxi | 3 weeks ago
2 likes

Don't you mean with 4,200 off the price rather than 420? 

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Vo2Maxi replied to Rome73 | 3 weeks ago
0 likes

I did indeed! 🤦‍♂️
Corrected now, thank you.

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qwerty360 replied to Vo2Maxi | 3 weeks ago
1 like

You can also get an electric company car and get what, ~1/3-2/5 off the lease costs...

 

Which is more than the £4200 saving discussed above...

 

Bike saving is over 5 years. Company car is in a year (and continues...)

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matchico | 3 weeks ago
0 likes

Well...

He's right on the system being totally abused. At the beginning their was an upward limit of £1000 of the amount you could finance with the scheme. Now a days plenty of my cycling friend buy fancy bikes with it but you won't see any of these bikes on your commute. They still use the train or worse, drive to work while their bike is only for weekend rides.

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bensynnock replied to matchico | 3 weeks ago
2 likes

You can barely buy a bike worth riding for £1000.

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