FEATURE
now reflects wider consumer demand, such as E-bikes and adapted cycles. In fact, since the £1,000 cap was removed in 2019, the scheme has broadened access to e-bikes, e-cargo bikes, and adapted cycles, tripling the size of the UK e-bike market.” It is further revealed by the Cycle to
Work Alliance that employers are once again more receptive to the scheme, knowing that e-bikes can be offered. Two-thirds of employers reported that the updated guidance on pricing has revitalised employee interest in the scheme. There is a tangible effect of the
investment in cycling and transport policy than to scheme design alone – this is an area the Alliance is also committed to championing.” Though an absolutely fair comment, cycling
‘THE CYCLE TO WORK SCHEME IS A
positive legislative adjustment that came a few years back in accretive market value, both total and for retail partners too, then. Higher ticket sales will tend to have more generous margins, but in recent years, with pervasive discounting, such things do not necessarily ring true in every instance. At only around 150,000 sales to Germany’s two million electric bikes shifted annually, questions have arisen around the methods used to sell e-bikes in particular. It is now said that around half of all e-bike sales in Germany and Belgium are leased, so naturally, we’re curious what the Alliance’s take is on this sales avenue. Of this, Steve comments, “In practice, it is very similar to
the UK’s Cycle to Work scheme with a few key differences, including no national minimum wage limit and availability to the self-employed. While these features are areas we continue to call for in the UK, they are not the decisive factor behind the success seen in mainland Europe. The real drivers are the strength of cycling infrastructure and the cultural adoption of cycling as a mainstream mode of transport. This means that, while leasing models can be beneficial, the economic success in Germany and Belgium is more closely tied to broader
IMAGE: LOVE THE LIFE YOU LIVE, SHUTTERSTOCK
PROVEN, COST-EFFECTIVE MECHANISM FOR DRIVING CYCLING UPTAKE. IT DELIVERS CLEAR ECONOMIC BENEFITS BY SUPPORTING SUSTAINABLE TRANSPORT, REDUCING CONGESTION, IMPROVING PUBLIC HEALTH, AND LOWERING EMISSIONS - ALL OF WHICH GENERATE LONG-TERM SAVINGS FOR THE ECONOMY AND THE NHS.’
advocacy aside, the numbers do give food for thought. If Germany is leasing at least 1 million electric bikes already, such things are not to be easily dismissed; to remind that figure equates to more than sixfold the UK’s total e-bike sales volume, inclusive of cycle to work sales. Population-wise, the UK sits on the brink of 70 million, and Germany 83.5 million. A report courtesy of Zukunft Fahrrad
further illustrates some illuminating facts about this market’s leasing progress. According to its research, the German company’s bike leasing market made up for €3.4 billion in market value, with 41% of the workforce involved and 2.1 million bicycles or e-bikes leased and in current circulation. These figures
are actually a little down on the prior year’s trading, with newly leased models down to around 750,000 from 790,000. E-bikes made up 78% of this tally, and of course, this
brought the average sales price way up to an average of €3,720. Naturally, this brought into play some very practical equipment, namely cargo bikes and the kind of commuter bikes that people will be more inclined to ride regularly, for longer distances with less worry about the bikes’ service schedules or longevity. So, what of bike leasing in the UK? Could it come to pass as a viable alternative, or extra tool, on top of Cycle to Work? Steve Ellis of Blike, best known as a bike subscriptions business, but also part of the niche mix trying to lease e-bikes in the UK, has some thoughts. More than that, he has a white paper on the subject of overhauling the Cycle to Work Scheme, instead replacing it with what he dubs an ‘Active Travel Leasing Scheme.’ In his words, there are two simple delivery options: 1 Tax deduction for eligible leasing/hiring/subscription payments (e.g., a 100% deduction capped per year) 2 An annual allowance (e.g., £500 per year) redeemable at accredited cycle shops and FCA-regulated lessors/ subscription services. In his view, leasing will deliver more bike trips per pound spent on subsidy, all the while ensuring bikes stay safe and roadworthy. Naturally, the aim would be to extend the reach to cover those that the cycle to work scheme misses, which he claims is 80% of the potential market, once you account for those not offering Cycle to Work, the retired, or student populations, parents on leave and the unemployed. If a 100% tax deduction were enabled against taxable
38 | October 2025
www.bikebiz.com
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