The Ultimate Guide to the Cycle to Work Scheme
Mar 09, 2025
Cycling to work is one of the most cost-effective, health-boosting, and sustainable ways to commute. Whether you're looking to save money, improve fitness, or reduce your carbon footprint, the Cycle to Work scheme makes owning a bike or electric bike more affordable than ever.
But how does it work? Is it really worth it? And can you use it for an e-bike? In this guide, we’ll break down everything you need to know.
What is the Cycle to Work Scheme?
The Cycle to Work scheme is a government-backed initiative designed to encourage cycling as a mode of transport. It allows employees to lease a bike and cycling accessories through their employer via salary sacrifice, spreading the cost while enjoying tax and National Insurance savings.
The scheme applies to all kinds of bikes, including:
- Standard bicycles
- Electric bikes (e-bikes)
- Cargo bikes
- Folding bikes
- Cycling accessories (helmets, locks, lights, etc.)
At the end of the lease period, you have the option to:
- Buy the bike at fair market value
- Return it
- Extend the hire period
How Does the Cycle to Work Scheme Work?
The process is simple and hassle-free:
1. Employer Registration
Your company must be registered with a cycle scheme provider like Cyclescheme, or Halfords Cycle2Work. If they’re not signed up, suggest they do—it’s free for them!
2. Choose Your Bike & Accessories
Pick your bike from approved retailers. This includes e-bikes, which are great for longer commutes and hilly areas.
3. Employer Approval & Payment
Your employer pays for the bike upfront, and you receive an e-certificate to redeem at a retailer.
4. Monthly Salary Sacrifice
The cost of the bike is deducted before tax and National Insurance, saving you 28-47% depending on your income bracket.
5. End of Hire Options
At the end of your lease, you can pay a small fee to own the bike (typically 7% of its value after 4 years) or return it.
Can I Use the Cycle to Work Scheme Twice?
Yes! Many schemes allow multiple agreements, meaning you can:
✅ Get an upgrade after a few years
✅ Add a second bike for different terrains or seasons
✅ Purchase new accessories (e.g., winter tyres, panniers, or lights)
However, you can’t have two active agreements at once—you must complete the first before starting a new one.
Are Cycle to Work Schemes Worth It?
Absolutely! Here’s why:
✅ Save Money
- Spread the cost over 12-48 months
- Save 28-47% through tax benefits
- No upfront payment required
✅ Improve Health & Well-being
- Cycling boosts fitness, mental health, and productivity
- Regular cyclists take 1.3 fewer sick days per year
✅ Reduce Your Carbon Footprint
- Cycling cuts CO₂ emissions by 90% compared to driving
- Less congestion = cleaner air and safer roads
✅ No Interest or Credit Checks
Unlike loans or credit cards, the scheme is interest-free and doesn’t affect your credit score.
Who Does the Cycle to Work Scheme?
The scheme is available to:
🚴♂️ Employees paying tax via PAYE
🚴♀️ Public & private sector workers
🚴♂️ Employers of all sizes—many major UK companies are already signed up!
Who isn’t eligible?
- Self-employed workers (unless via an umbrella company)
- Employees on minimum wage (as salary sacrifice can’t reduce pay below legal limits)
Why Cycle to Work?
Beyond the savings, cycling to work has countless benefits:
✅ Faster commutes – Skip traffic, avoid public transport delays
✅ Cheaper travel – No fuel, parking, or congestion charges
✅ Flexible routes – Take scenic paths, explore new areas
✅ Boosted energy & focus – Start the day feeling great
Where Does the Cycle to Work Scheme Apply?
The scheme is available UK-wide and can be used at thousands of participating retailers, including:
- Local bike shops
- National chains like Halfords, Evans Cycles, and Tredz
- Online stores such as Glide & Gear
Check with your employer to see which scheme provider they use, as this determines where you can buy from.
FAQs: Cycling to Work & Electric Bikes
Can I Use an Electric Bike in the Rain?
Yes! E-bikes are designed for wet weather. Just follow these tips:
- Use mudguards to keep dry
- Avoid deep puddles to protect electronics
- Clean and dry the bike after heavy rain
- Store it in a covered area when possible
Can I Get an E-Bike on the Cycle to Work Scheme?
Yes! E-bikes are fully eligible, making them a great option for longer or hilly commutes.
Do I Need a License for an E-Bike?
No—UK law treats e-bikes like regular bicycles if they:
- Have a motor limit of 250W
- Stop assisting at 15.5 mph
Higher-powered e-bikes are classed as mopeds and require registration & insurance.
For more information, please review our legal guide on electric bikes and scooters.
FAQs: Glide & Gear – Your Online E-Bike Seller
Who Is Glide & Gear?
Glide & Gear is a trusted UK-based online retailer specialising in high-quality electric bikes and accessories.
Do You Accept Cycle to Work Scheme Payments?
Yes, we accept most major cycle to work schemes. Please visit our cycle to work page for more information.
Why Buy an E-Bike from Glide & Gear?
✅ Premium electric bikes at competitive prices
✅ Expert guidance to help you choose the right e-bike
✅ Fast, reliable UK delivery
Final Thoughts: Is the Cycle to Work Scheme Right for You?
If you’re looking for a cost-effective, sustainable, and health-boosting way to commute, the Cycle to Work scheme is a no-brainer. With massive savings on e-bikes and accessories, there’s never been a better time to make the switch.
🚲 Start your cycling journey today—ask your employer about signing up!
