Cycle to Work Scheme UK: Pros, Cons & How to Save on Bikes
Apr 21, 2025
Cycle to Work Schemes have grown in popularity across the UK, offering employees a smart way to save money while promoting a healthier commute. Though like any employee benefit, these schemes come with both advantages and disadvantages.
In this guide, we’ll explore the key pros and cons of Cycle to Work schemes to help you make an informed decision.
What is a Cycle to Work Scheme?
The Cycle to Work scheme is a government-backed salary sacrifice programme that allows employees to lease a bicycle and related equipment through their employer. Monthly payments are deducted from gross salary, enabling savings on both income tax and National Insurance contributions.
At the end of the hire term, typically 12 to 18 months, you are usually given the following options:
- Purchase the bike outright at its fair market value
- Extend the hire agreement.
- Return the bike
Pros of the Cycle to Work Scheme
1. Big Financial Savings on Bicycles and Equipment
One of the most attractive features of the Cycle to Work scheme is the substantial financial savings. Through a salary sacrifice arrangement, employees can save up to 39% off the retail cost of bicycles and approved accessories, depending on their tax bracket. Because payments are made before tax and National Insurance deductions, this tax-efficient model makes it far more affordable to purchase high-quality commuter bikes and eligible electric bikes (e-bikes), and cycling accessories. For anyone looking to invest in a premium setup, this scheme provides an economical route without the need for interest-bearing finance.
2. Convenient Monthly Payments with No Interest
Rather than paying a large sum upfront, the scheme enables you to spread the cost over 12 to 18 months via manageable monthly deductions from your salary. This budget-friendly solution is ideal for employees wishing to invest in a durable and reliable bicycle without financial pressure. It's particularly useful if you're considering a mid-range or high-end model, as spreading the cost can feel more manageable.
3. Improved Health, Fitness and an Active Lifestyle
Cycling to work incorporates daily physical activity into your routine, without the cost or commitment of a gym membership. Regular cycling enhances cardiovascular health, strengthens muscles, and boosts stamina. For office-based workers, it’s a great way to counteract sedentary behaviour. Those who commute by bike often report improved mental well-being, with reduced stress levels and enhanced mood thanks to the release of endorphins.
4. Reduced Transport and Commuting Expenses
Using a bicycle as your primary form of transport significantly cuts down your monthly commuting costs. You'll save on fuel, parking, public transport fares, and car maintenance. For city dwellers in places such as London, Manchester, or Birmingham, cycling can even reduce overall travel time. Across a year, the cumulative savings can be considerable.
5. Increased Productivity and Workplace Energy
Cyclists frequently arrive at work feeling more energised and alert. A cycle commute helps improve blood circulation and releases feel-good hormones, contributing to improved focus and productivity throughout the day. In addition, employees who cycle tend to take fewer sick days, which benefits both individual well-being and organisational performance.
Cons of the Cycle-to-Work Scheme
1. No Immediate Ownership of the Bicycle
Throughout the hire term, the bicycle is technically owned by the employer or scheme provider. To keep the bike at the end of the agreement, you’ll usually need to pay a Fair Market Value (FMV) fee. While often modest, this final payment can be an unexpected cost if you're not prepared for it. It’s important to factor this into your total financial planning.
2. Salary Sacrifice Could Impact Other Benefits
Enrolling in the Cycle to Work scheme means reducing your gross salary, which may affect other salary-linked benefits such as pension contributions, life insurance, or statutory payments like maternity or sick pay. It’s wise to speak to your HR or payroll team to understand how this might affect your wider employment package.
3. Limited Choice of Bicycles and Accessories
Depending on the provider your employer partners with, you might be limited to specific retailers or brands. This can restrict your options if you’re after a particular model or type of accessory. For cycling enthusiasts who value specific components or custom features, this can be a downside. Additionally, some schemes impose spending caps, which could be a hurdle if you’re interested in higher-end or electric bikes.
4. Challenges Related to UK Weather and Cycling Infrastructure
The British climate can be unpredictable, with rain, wind, and colder seasons making cycling less appealing. Furthermore, not all areas have dedicated cycling infrastructure such as bike lanes, secure parking, or traffic-calmed roads. These limitations can create barriers to regular cycling, particularly for those new to it or lacking safe routes.
5. Lifestyle Adjustments and Logistical Planning
Shifting to cycling as your main form of transport involves more than just buying a bike. You may need to plan additional time for travel, find safe bike storage at home or work, and potentially require access to shower or changing facilities. These adjustments require planning and may pose initial challenges for those transitioning from driving or using public transport.
Cycle to Work Schemes Accepted at Glide & Gear
At Glide & Gear, we are proud to support eight different Cycle to Work voucher schemes. These programmes make it easy for employees across the UK to purchase premium bicycles, e-bikes, and accessories at a reduced cost while spreading the expense over time.
1. Cyclescheme
One of the most widely recognised Cycle-to-work providers in the UK, Cyclescheme offers access to thousands of bike retailers and supports a wide variety of cycle types and accessories. It is known for its flexibility and ease of use.
Why choose it:
- Suitable for both standard and electric bikes
- Simple online application process
- Great for both first-time and regular cyclists
2. Bike2Work Scheme
Supporting local bike shops and businesses of all sizes, the Bike2Work Scheme is a straightforward and flexible option.
Why choose it:
- Excellent for small businesses and independent shops
- User-friendly system
- Wide accessory coverage
3. Vivup
Vivup is widely used within the NHS and public sector, integrating health benefits with cycling incentives.
Why choose it:
- Perfect for public sector staff
- Combines health and lifestyle support
- Smooth digital platform
4. Halfords Cycle2Work
This scheme is powered by Halfords and includes access to their stores, Tredz, and partner bike shops.
Why choose it:
- In-store and online support at Halfords
- Trusted retail partner
- Includes servicing options
5. Cycle Solutions
Tailored to large organisations, especially in the public sector, Cycle Solutions offers employer-specific portals and customer care.
Why choose it:
- Employer-focused
- Ideal for NHS trusts and councils
- Strong customer support
6. GoGeta
A modern platform aimed at simplifying the Cycle to Work process for both employers and employees.
Why choose it:
- Tech-driven platform
- Fast digital onboarding
- Great for SMEs and start-ups
7. My Benefits World
Offers a comprehensive range of employee benefits, including Cycle to Work schemes. Why choose it:
- Integrated with wider HR benefits
- Customisable for employers
- Straightforward claims process
8. Caboodle
Caboodle offers a streamlined Cycle to Work programme designed for mid-to-large companies with automated tools and reporting.
Why choose it:
- Automated administration
- Corporate-friendly features
- Efficient and easy to use
Final Thoughts: Is the Cycle to Work Scheme Right for You?
The Cycle to Work scheme offers an excellent opportunity to save money, stay active, and reduce your environmental impact. With tax savings of up to 39% and flexible monthly payments, it’s an attractive option for both new and seasoned cyclists. That said, it’s important to weigh the potential downsides—such as limitations on ownership and impact on other benefits—before making your decision.
At Glide & Gear, we make it easy to take advantage of the scheme by accepting vouchers from eight leading providers, including Cyclescheme, Bike2Work, Cycle Solutions, and Halfords Cycle2Work. Whether you're looking for a high-quality commuter bike or a premium electric bike (e-bike), we've got you covered.
Ready to ride smarter? Explore our range and see how much you could save with your Cycle to Work voucher.
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