Is your organisation missing out on Cycle to Work?

Cycle to Work is a government-backed salary sacrifice scheme that helps employees spread the cost of a new bike and safety equipment across their pay. Instead of paying upfront, employees make pre-tax salary reductions over an agreed period — saving on Income Tax and National Insurance in the process.

It costs employers very little to set up, and the organisation benefits from reduced National Insurance contributions too. It's one of those rare schemes where both employers and employees come out ahead.

Here's the thing about Cycle to Work: it doesn't just tick one box, it ticks several.

It strengthens your Employee Value Proposition: In a competitive hiring market, the quality and breadth of your benefits package matters. Cycle to Work signals that your organisation invests in its people's health, finances and sustainability — all things today's employees care about.

It supports your ESG commitments: Active travel reduces carbon emissions and cuts congestion. If your business has sustainability targets, Cycle to Work is a tangible and reportable initiative that directly supports your goals.

It helps reduce sickness and absence: Research shows that bicycle commuters take on average 4.5 fewer sick days than non-cycling commuters and are 18% less likely to be absent longer than 10 days due to health problems. That's a meaningful difference.

It supports with cost of living: Cycling to work is significantly cheaper than driving or using public transport with average commuting now £2,228 per year.

It’s inclusive: Perkbox’s Cycle to Work scheme offers more than just standard road bikes – with adaptive bikes, e-bikes and a whole host of safety equipment, there’s something to suit a range of abilities.

And the cost of not offering it? Your competitors likely already do. It’s a popular benefit, so employers who don't offer Cycle to Work aren’t just missing out on their own NI savings, they’re handing a recruitment advantage to others.

What do employees actually get?

Through the scheme, employees can hire a bike and safety equipment, like helmets, lights, locks and hi-vis gear, for use on their qualifying commute journeys.

A hire agreement is set up through the scheme, with gross salary reductions made over the agreement period. At the end, employees have flexibility to choose what happens next and the savings they've made along the way make the whole thing far more manageable than buying outright.

Employees can save up to 42%* on the cost of a new bike and/or safety equipment, depending on their personal tax situation. Here's what that could look like in practice:

Cycle to Work is one of the easiest benefits to implement and is a valued benefit for employees. Whether you're looking to support your team's finances, hit sustainability targets, or simply give people a reason to choose your business over a competitor's, this is a smart place to start.

See how easy it is to get Cycle to Work running for your team.

Qualifying journeys are defined by HMRC as commuting between your home and your usual place of work.
Employers may act as an Introducer Appointed Representative of SME HCI Limited (trading as Perkbox), of 3 Dorset Rise, London EC4Y 8EN, who are authorised and regulated by the Financial Conduct Authority (Ref 626422). If an employer is independently authorised and regulated by the Financial Conduct Authority, details can be found at https://register.fca.org.uk/s/search. If not listed on this register, they may be exempt under the FSMA Regulated Activities Order. The statutory disclosure applicable to you will depend on your employer's scheme arrangement. UK only, 18+, subject to status, terms apply.

*Up to 42% savings: Figures shown are a guide only and dependent on your own personal situation. Excludes End of Agreement fee (if applicable). Bikes available may be subject to your organisation scheme limit.