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Cycle to Work Alliance: Behavioural Impact Analysis (UK)

In February 2011 the UK's Cycle to Work Alliance released the results of a research project to to gain a better understanding of the health and environmental benefits of the cycle to work scheme and the motivations that have driven demand from the users of the scheme, and the employers who offer it.The project found that 87% of participants noticed a health benefit from their more active commute to work and 97% of employers offering the scheme think it is an important way to encourage a healthier workforce.

The cycle to work initiative is a tax-efficient, and on the whole, salary-sacrificed employee benefit that provides a way of encouraging more adults to take up cycling.

Introduced in the 1999 Finance Act, the scheme encourages employers to loan bicycles and cycling safety equipment to employees as a tax-exempt benefit for the purpose of cycling to work. Under the scheme, employers buy cycling equipment from suppliers approved by their scheme administrator, and hire it to their employees. At the end of the loan period, the employer may choose to give the employee the option to purchase the equipment.

The scheme is a vital way in which the benefits of cycling can be promoted. The savings that individuals make through the cycle to work scheme improves the affordability of, and access to, cycling. Employees who participant in schemes run by Alliance members, on average, save up to 40% of the total cost of a new bike.

To date over 400,000 people have taken advantage of the scheme, which involves over 2,220 bike retailers and 15,000 employers. The cycle to work scheme is extremely popular among employers, being the second most popular salary sacrifice based employee benefit, with 82% of employers who offer salary sacrifice schemes making it available to their staff.

Cycle to Work Alliance: Behavioural Impact Analysis | 916KB PDF

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