Cycle to Work Scheme: Is It Worth It? Pros and Cons

The Cycle to Work Scheme has seen a steady rise in popularity across the UK, offering employees a tax-efficient way to purchase a bicycle and accessories for commuting. With growing interest in eco-friendly travel and rising fuel costs, many are asking: is the Cycle to Work Scheme really worth it?

In this article, we’ll break down how the scheme works, highlight the key benefits and potential drawbacks, and help you determine if it’s the right move for you.

What Is the Cycle to Work Scheme?

The Cycle to Work Scheme is a government-backed initiative that allows employees to acquire a bike and cycling accessories through their employer while saving money through salary sacrifice. This means payments are deducted from your gross salary, reducing your income tax and National Insurance contributions.

There are several providers that facilitate this scheme for employers and employees, including:

• Caboodle Cycle2Work
• GoGeta
• Bravo Benefits
• Bike2Work Scheme
• Green Commute Initiative
• Vivup

Each provider has its own system, limits, and options for purchasing or leasing bikes and accessories.

How Does It Work?

1. Employee selects a bike and accessories (most schemes allow you to pick items from a range of participating retailers).
2. Employer purchases the bike through a third-party provider.
3. Employee repays the cost via salary sacrifice over 12 to 18 months, saving on tax and NI.
4. At the end of the agreement, the employee can:
• Return the bike,
• Extend the rental agreement, or
• Buy the bike for a reduced “fair market value”.

The Green Commute Initiative offers one of the few schemes without a £1,000 limit, as it's FCA-authorised, giving employees greater flexibility on the value of the bike.

Pros of the Cycle to Work Scheme

1. Save Money on a New Bike

Employees can save between 25–39% on the cost of a new bike and safety gear, depending on their tax bracket and the scheme's terms. Providers like Bike2Work Scheme offer a calculator to help estimate your savings.

For example, a £1,200 bike may end up costing around £780 for a basic rate taxpayer once tax and NI savings are factored in.

2. Pay in Monthly, Interest-Free Instalments

Instead of paying upfront, you spread the cost via salary deductions over 12–18 months. This makes high-quality bikes more accessible without needing to use credit cards or loans.

Caboodle Cycle2Work highlights how this approach makes budgeting easier and reduces financial pressure.

3. Boost Your Physical and Mental Health

Cycling to work is a great way to incorporate regular exercise into your daily routine. Many schemes promote the health benefits associated with regular riding, including increased fitness, improved mental wellbeing, and reduced stress.

GoGeta actively supports healthy commuting as a core benefit of their employee wellbeing programmes.

4. Eco-Friendly Transport Option

Cycling reduces your carbon footprint and helps combat air pollution. The schemes are designed to encourage sustainable commuting as part of wider employer ESG (Environmental, Social, and Governance) strategies.

Bravo Benefits positions cycling schemes as an effective way for employers to contribute to sustainability goals while supporting employee wellbeing.

5. No Fuel or Public Transport Costs

With ever-rising fuel prices and rail fares, cycling offers a low-cost and predictable alternative. Once you own the bike, your commute becomes virtually free—no petrol, parking, or tickets required.

Vivup highlights this as a major benefit in cost-of-living support for staff.

Cons of the Cycle to Work Scheme

1. You Don’t Technically Own the Bike at First

During the hire period, the bike is owned by your employer or the scheme provider. You're leasing it, with the option to buy it at the end.

Providers like Green Commute Initiative offer simplified ownership transitions, but not all schemes make this clear upfront.

2. Unclear End-of-Term Conditions

Some providers use an Extended Use Agreement to avoid employees needing to pay a balloon payment at the end of the term. However, the final ownership process can still be confusing or unexpected for first-time users.

It’s worth checking the fine print with your chosen provider. Bike2Work Scheme and Vivup both provide clear guidance on end-of-scheme options.

3. Retailer Restrictions

Some schemes only work with specific bike shops or online retailers. This could limit your choices, especially if you have a preferred bike brand or want to buy from a local independent shop.

However, providers like GoGeta and Bravo Benefits aim to offer broader retailer partnerships for better flexibility.

4. Potential Impact on Other Benefits

Since salary sacrifice lowers your gross salary, it can marginally affect benefits tied to income such as pension contributions, statutory maternity pay, or mortgage affordability. This is more relevant for lower earners or those close to thresholds.

Always speak to your HR or payroll team before enrolling.

Is the Cycle to Work Scheme Worth It?

For most people, yes—especially if you’re looking for an affordable, healthy, and sustainable way to commute.

The scheme makes financial sense if:

• You’re planning to cycle regularly,
• You’d rather spread the cost over time,
• You’re in a higher tax bracket and want to maximise savings,
• Your employer works with a transparent, reputable provider like Caboodle or Green Commute Initiative.

But it may not be ideal if you already own a decent bike, don’t cycle often, or are uncomfortable with salary sacrifice arrangements.

Summary Table: Pros vs Cons

Final Thoughts

The Cycle to Work Scheme is one of the most accessible and beneficial workplace perks for UK employees. With multiple providers like Caboodle, Bike2Work, and Vivup, it’s easier than ever to take advantage of the scheme.

As long as you review the provider’s terms and ensure the arrangement fits your lifestyle, it’s a great way to save money, stay active, and reduce your carbon footprint—all at the same time.