Encouraging employees to cycle to work not only benefits the environment but also promotes a healthier and happier workplace.
What is the ‘Cycle to Work’ scheme?
- A Government scheme that allows employees to ‘hire’ a bicycle (and equipment) for a certain period of time (usually 12-18 months), with the choice to purchase at around 25% of the market value at the end or extend the hire period for 3 years (this option requires a small refundable deposit with no further repayments, and the employee can either return the equipment at the end or keep it with no further cost)
- It is a ‘salary sacrifice’ employee benefit, meaning the employee agrees to give-up a certain amount of pre-tax salary for a benefit. The employee will benefit from paying less tax and NI contributions on their remaining salary.
- The employer will need to be registered with one of the ‘Cycle to Work’ scheme providers
- Basically, the employer will purchase the equipment, and the employee will hire it, making monthly instalments through salary.
- Only employees who pay tax under PAYE are currently eligible for the scheme; if the deductions take an employee’s salary to below the National Minimum Wage, that employee will not be eligible.
A cycle-to-work scheme offers several potential benefits for employers, including:
- Healthier, more productive staff who may take fewer sick days
- Savings on employer national insurance contributions
- A reduced carbon footprint for the organisation
- Lower demand for employee parking or reduced parking costs
- Enhanced benefits package
For employees, the primary advantage is the ability to get a new bike and accessories, with no upfront costs and no interest on monthly instalments.
Additional benefits include reduced commuting costs and the positive health and wellbeing impacts of regular exercise.
Here are some other practical tips for employers looking to support and promote cycling within their organization:
- Provide Secure Bike Storage:
Ensure safe and convenient parking for bicycles to give employees peace of mind.
- Install Shower and Changing Facilities:
Make it easy for employees to freshen up and change after their ride, especially for those with longer commutes.
- Organize Group Rides and Events:
Foster a sense of community by organising group rides, safety workshops, or cycling challenges.
- Promote Health and Environmental Benefits:
Highlight the health benefits and environmental impact of cycling, encouraging more participation.
- Offer Incentives:
Provide incentives like mileage allowances, wellness points, or recognition for employees who regularly cycle.
- Educate on Safety:
Provide resources or training on safe cycling practices and local bike-friendly routes.
By making cycling a convenient and appealing choice, you can enhance employee wellness, reduce your carbon footprint, and create a more engaged and motivated team.
Further Resources:
https://www.gov.uk/expenses-and-benefits-bikes-for-employees
For more support on this or any other HR or recruitment topics, contact us