



The bike-buying tax incentive scheme Cycle to Work saw a 7.9 percent increase in takeup during 2012 compared to 2011, according to newly published industry figures.


Members of the Cycle to Work Alliance (Cyclescheme, Cycle Solutions, Evans Cycles and Halfords) say 2012 saw more than 86,000 new cyclists commuting to work by bike, far exceeding the comparative figure for 2011. The fourth quarter of 2012 saw the largest increase, with 30 percent more individuals signing up than in the same 2011 period.

Under the Cycle to Work scheme, employees sacrifice some salary by leasing a bike from their employer (who must be scheme members), but benefit from tax and national insurance rebates in return. At the end of the hire period they buy the bike at a depreciated value. Higher rate tax payers can save up to 42 percent on the cost of a new bike and safety equipment.

The scheme was introduced by the 1999 Finance Act, and so far more than 500,000 people have signed up. That number involves over 2,220 bike retailers and 23,000 employers.

The Alliance puts the impressive growth down to the UK’s Olympic and Tour de France success, plus economic factors such as rail fare increases.

Steve Edgell, chair of the Cycle to Work Alliance and director of Cycle Solutions, said, “The Alliance has seen an increasing interest by both employers and employees in the benefit of commuting to work by bike. For employers, promoting cycling to work ensures a healthier and happier workforce, while employees see the scheme as beneficial to both their health and their finances.”

A behavioural impact analysis by the scheme made the following headline findings:

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