Cycle to work: why employees love it (even if they don’t use the bike)

The cycle to work scheme in the UK has been around for over two decades now, and while many employees jump at the chance to get a shiny new bike at a discounted price, it’s often the case that even those who don’t use it straight away still feel the benefit.

In essence, the scheme allows employees to get bikes and accessories tax-free through salary sacrifice. It’s a government backed initiative that encourages people to swap four wheels for two, supporting both physical health and sustainable commuting. But let’s be honest – not everyone ends up cycling to work every day. So, why is it still so popular?

What’s the big win for employees?

The financial perks are hard to ignore. With the cycle to work scheme UK setup, employees can save between 25% and 39% on the cost of a bike and equipment. This depends on their tax band, meaning a higher-rate taxpayer could save significantly more.

Let’s break it down:

• a basic-rate taxpayer (20%) on a £1,000 bike can save around £320

• a higher-rate taxpayer (40%) could save about £420 on the same bike

• payments are taken straight from their salary before tax, making it feel far more manageable than buying outright

  
  

Beyond the savings, there’s a wellbeing boost. Employees who cycle regularly report improved mood, reduced stress, and higher energy levels. Even if they don’t cycle daily, having access to a bike encourages active choices outside of work hours – it’s preventative health at its best.

Employers benefit too (and not just from happier staff)

For businesses, the commuting benefits are more than just good PR. Supporting employee wellbeing through schemes like this has proven links to reduced absenteeism, increased productivity, and stronger team morale.

A few stats to consider:

• cycling to work can reduce the risk of heart disease by up to 46%

• active commuters are 27% less likely to take sick days

• according to the Cycle to Work Alliance, 86% of employers say the scheme has a positive impact on their workforce

  
  

It also contributes to sustainability goals, making it easier to promote a green, progressive image internally and externally. Plus, the scheme is cost-neutral for

employers and fairly easy to set up.

Carving out a collaborative culture. 

Events create energy, engagement and camaraderie in a way that digital tools simply can’t replicate. Whether it’s a wellbeing day where a junior member of the team can share an experience with the CEO, a workshop that tackles issues that are relevant to your employees or a company-wide walking challenge. Events bring people together in a shared space which is particularly important in flexi-working environments.

When employees see their colleagues and senior leadership actively participating, it sends a powerful message that wellbeing is taken seriously. These moments add credibility to the wider strategy, helping turn wellbeing from a policy into a lived experience. With visible C-suite support and alignment to company goals, the result is stronger engagement and long-term cultural impact.

Even if the bike gathers dust... it still matters

Here’s the truth: not everyone who signs up will become a daily cyclist. Some may ride once a week, some on weekends, and others may use the bike purely for leisure. But it doesn’t matter. What matters is that employees feel supported to make active lifestyle choices, and that their employer is investing in their wellbeing in a way that feels accessible, flexible, and individual.

That sense of choice –even if it’s not always acted on – helps people feel valued.

FAQs about the cycle to work scheme

• Can you use the cycle to work scheme if you work from home? Yes – many employees now use the scheme for leisure cycling, not just commuting.

• Is there a limit on how much you can spend? Most schemes allow up to £1,000, but some employers use FCA-authorised providers who offer higher limits for electric or premium bikes.

• Can I buy a second-hand bike? Generally, no – the scheme applies to new bikes from registered retailers.

• What happens at the end of the hire period? You’ll usually have the option to buy the bike at a fair market value, extend the hire, or return it.

• Where does Planet Once come in?

  We’re big believers in making active habits easier. That’s why we work with employers to align their wellbeing strategies with tools like the 

  cycle to work scheme. It’s not just about saving on a bike, it’s about supporting daily movement, better physical health, and smarter commuting options.

Whether your employees are cycling to work, around the park, or to the pub – giving them the option is what matters most.

If you'd like to explore how Planet Once can embed this into your employee wellness initiatives, we’d love to chat.