The Last Word Comment
Riding high?
Has the government’s Cycle to Work scheme been successful in changing business practices?
Rick Robson Analyst, Merlin Cycles
Despite the advantages that can be gained from switching your car for a bike, British cyclists are still in the minority. The British Social Attitudes Survey found that in 2018, over 80% of respondents cycle less than once a month or never at all. These findings came 18 years after government launched the Cycle to Work scheme, designed to encourage more people in the UK to commute by bike to preserve the environment and improve the nation’s health. Now in its twentieth year, the scheme was
introduced as part of the Finance Act of 1999 as a way to encourage more people to swap their car for a bike. It was designed to persuade the UK’s workforce to make healthy and environmentally friendly choices when travelling to work. As an incentive, firms enlisted in the scheme are able to save money when reimbursed through the scheme, while employees are entitled to an affordable way to purchase a new bike, tax-free. The scheme is fairly straightforward to
understand. Firms can sign up with a provider which allows employees to spend up to £1,000 on bikes and equipment, tax free. This means employees will save up to 42% on the overall value of their cycling gear. Employers buy the equipment from a
scheme provider and employees pay their company back in monthly instalments as part of a salary repayment scheme. Bikes can be used in leisure time as well as
commuting to work, and at the end of the loan term – which is essentially a hire period for the equipment – employees can purchase the gear by paying any outstanding fees; otherwise, it will belong to the employer. With personal, financial, and environment
benefits for both businesses and employees, the scheme seems like a no-brainer. But has it actually helped to increase the number of cyclists cycling to work in the UK? We have looked at data from studies by the Department of Transport and Institute
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proportion of cyclists to non-cyclists has remained the same in that time. l The proportion of adults that usually walk or cycle to work has remained roughly the same over the past 15 years. The scheme has persuaded cyclists to
ride more frequently, but, has been less effective at convincing non-cyclists to take part; the IES survey discovered that 57% of respondents were already cyclists before taking part in the scheme. Research from the Department of
If anything, the scheme is a fantastic, affordable way for cyclists to upgrade their kit and indulge their passion for riding. And, for those who make a long-term commitment to swapping their car for their bike, they can enjoy incredible health and financial benefits
for Employment Studies (IES) to see how cycling in Britain has changed over the years since the introduction of the scheme. While data shows people are travelling
further on bikes, with the average distance in 2002 being 987 miles per year, rising to 1144 miles per year in 2017, the volume of cyclists has generally remained the same: l Cycling on British roads sharply declined during the 1950s and 1960s, but has been slowly growing since the 1990s. l The number of cyclists has increased between the 2001 and 2011 census, but the
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Transport found that the biggest concern for people travelling by bike in the UK is concerns with road safety. Three-fifths of UK adults aged 18 and over are not confident enough in their own ability as a cyclist to ride on the roads. It is not just safety issues, other reasons include: lMy bike is broken/I do not own a bike. l It is easier/quicker to travel by car. l Lack of time/too busy l I have a car/driving licence. l General lack of interest. l Too much traffic/traffic is too fast. Cycling has stayed fairly constant over
the years, even with the introduction of the scheme. Even so, there is evidence that people who already cycle are choosing to get involved, as the average distance travelled has increased and 37% of cycling trips in 2017 were down to commuting – higher than any other purpose. If anything, the scheme is a fantastic,
affordable way for cyclists to upgrade their kit and indulge their passion for riding. And, for those who make a long-term commitment to swapping their car for their bike, they can enjoy incredible health and financial benefits. If businesses actively promote these
facts to their employees, it may the incentive non-cyclists need to get involved in the Cycle to Work scheme and switch up their commute. CCR
February 2020
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