As summer reaches its peak, there's no better time to get involved in the annual Cycle to Work Day on August 1st. This initiative encourages us to swap car keys for bike helmets, promoting the benefits of cycling, including significant cost savings and improved health. You will know if you have followed me for a while but I am a mountain biker and any way I can promote cycling I will. The benefits I have personally encountered from cycling have been life-changing and I don't say that lightly.
In May, private plate specialists Regtransfers published an article around Walk to School Week, Which I shared with you all, it revealed that families could save over £400 a year and that is a huge amount in the current climate not to mention you can reap serious health benefits by simply by walking all, or part, of the way to and from school. But Today we are talking all about Cycle to Work Day which provides another perfect opportunity to weigh up the benefits and savings of switching from a car to a bike for your work commute.
How Much Money Could You Save by Cycling to Work?
Unless you’re working fully remotely, most of us travel further to our place of work than children do to school. As a result, we all spend a fortune on fuel. So by switching to a bike, there is potential for saving on fuel, parking, tyre wear, and other expensive car-running costs.
Of course, some journeys will be too far to be practical by bike but a 2022 survey by Project Solar showed that three-quarters of the UK’s employed population travel around 10 miles or less to work which is a nice bike ride and what a way to start your work day.
In 2022, Cyclescheme estimated that cycling to work could save you £750 per year. Not long after, that figure increased to an impressive £1,262 annually. These savings come from reduced fuel costs, lower vehicle maintenance, and fewer parking expenses. Essentially, the further you cycle, the more you save and your body and mind will reap the benefits too. Additionally, a battery-powered bike can make longer commutes more feasible and enjoyable while offering significant cost savings and health benefits.
What Are the Health Benefits of Cycling?
Beyond the financial perks, cycling offers numerous health benefits. Peer-reviewed studies highlight that cycling helps maintain a healthy body weight, reduces blood pressure, and lowers the risk of cardiovascular disease by 24% and cancer by 16%.
Beyond the financial perks, cycling offers numerous health benefits. Peer-reviewed studies highlight that cycling helps maintain a healthy body weight, reduces blood pressure, and lowers the risk of cardiovascular disease by 24% and cancer by 16%.
Mentally, cycling can reduce stress, improve sleep, and enhance overall well-being. It's a full-body workout that promotes fitness and boosts your mood, making it a win-win activity. I could not recommend this sport more.
What is a Cycle to Work Scheme?
For the past 25 years, the UK government has backed schemes encouraging people to cycle to work. Poor fitness and lack of exercise have been identified as aggravating factors contributing to the increasing load on the already-struggling NHS, and cycle-to-work schemes have been proven to offer a really good solution to help benefit everyone's health. What’s more, these schemes also reduce traffic congestion, pollution, and emissions - all key elements that can help drive the country towards net zero.
For the past 25 years, the UK government has backed schemes encouraging people to cycle to work. Poor fitness and lack of exercise have been identified as aggravating factors contributing to the increasing load on the already-struggling NHS, and cycle-to-work schemes have been proven to offer a really good solution to help benefit everyone's health. What’s more, these schemes also reduce traffic congestion, pollution, and emissions - all key elements that can help drive the country towards net zero.
Cycle-to-work schemes offer a way of getting a bike and accessories through your employer. They need to sign up to the official scheme. In theory, everyone benefits from involvement!
Benefits to You
Amazingly, using a cycle-to-work scheme could see you save up to 42% on the cost of a bike and accessories, spreading the cost over time. Myself and my husband have both received bikes from this scheme. You can also get the cycle and accessories of your choice.
Amazingly, using a cycle-to-work scheme could see you save up to 42% on the cost of a bike and accessories, spreading the cost over time. Myself and my husband have both received bikes from this scheme. You can also get the cycle and accessories of your choice.
Think of the savings you could have by cycling to work. save money on car fuel and wear and tear on your vehicle. Beyond this, you’ll benefit from improved fitness, well-being, and overall health plus find a hobby that you love if you are like me.
If I hadn't gotten my first bike on this scheme I wouldn't be doing what I do now. Traveling the world taking part in races and representing some of the world's biggest cycling brands. You never know where the cycle-to-work scheme could take you.
Benefits for Your Employer
There’s no cost involved in signing up for the scheme, and your employer could save up to 15.05% in National Insurance contributions for every participating employee.
On a more “everyday” level, more employees cycling means less need for employee parking facilities, and a fitter, healthier workforce who, in theory, will take fewer sick days. Studies show that people who cycle to work on a regular basis take, on average, 1.3 fewer sick days per year!
Benefits for the Government
As previously outlined, the reduced load on the NHS and reduction in pollution and emissions is a serious benefit to the government, thanks to less traffic and congestion. There’s also the reduced wear on road surfaces to consider, which may save taxpayers from forking out for roadworks and repairs.
As previously outlined, the reduced load on the NHS and reduction in pollution and emissions is a serious benefit to the government, thanks to less traffic and congestion. There’s also the reduced wear on road surfaces to consider, which may save taxpayers from forking out for roadworks and repairs.
How Does It Work?
Cycle-to-work schemes are a form of "salary sacrifice" - you get a benefit in return for a manageable sum that’s regularly deducted from your salary. In the case of Cycle to Work, the benefit is the bike and kit.
Cycle-to-work schemes are a form of "salary sacrifice" - you get a benefit in return for a manageable sum that’s regularly deducted from your salary. In the case of Cycle to Work, the benefit is the bike and kit.
Your employer would buy the bike upfront, and you hire it from them over a fixed period of (usually) 12 to 48 months. At the end of the hire period, you will have the chance to buy the bike from your employer at an appropriate price. That price could be up to 25% of the cost of the bike and any accessories you acquired through the scheme.
The deal is a really good money-saver overall as, under the scheme, you will pay less tax because of the salary sacrifice element. If your gross salary is £1,500 and your salary sacrifice is £100, you won't pay income tax on that £100, as it comes out of your pay pre-tax. This means you’d pay tax and National Insurance on £1,400, rather than £1,500.
Over the period of the scheme, the tax savings and total paid for bike rental and final purchase work out to save you money on the price you would have paid had you bought the bike without the scheme. That saving can be up to 42%, although it depends on your circumstances. There are savings calculators out there if you’re curious to crunch some numbers.
How Can You Get Started?
Check with your employer to see if they have a cycle-to-work scheme; these days many, if not most, do. If they don't, tell them about the benefits and ask if they'll consider signing up. They may thank you for it!
If your employer is already on board, the process will go something like this:
- Check with your employer to see if there is a limit to the price of bikes and accessories under the scheme. Some are capped at £1000, some have no limit.
- Pick the bike you want and the accessories/kit you'll need, such as a helmet, lights, etc.
- Tell your employer the cost and, if they ask, the details of what you want to buy.
- Take your voucher to a participating retailer and exchange it for your bike and gear.
- Your employer will arrange your salary sacrifice payments.
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