Cycle to Work scheme for employers: cut absence, boost wellbeing, and save NIC. See how UK teams use Cyclescheme.

How UK Employers Are Using Cyclescheme To Support Staff

You want a benefit that actually moves the needle on employee wellbeing, productivity, and cost. That’s why so many UK employers use Cyclescheme. It makes cycling to work simple for your team and cost-positive for your business. 

With sickness absence and travel costs on the rise, a well-run cycle to work programme does real work: it lowers stress, lifts energy, and helps people get to work for less.

Let’s get into what’s working right now, why the data backs it, and how you can make the most of it without loads of admin.

Cycle to Work scheme for employers: the business case

Sickness absence is biting. The CIPD’s 2025 Health & Wellbeing at Work report found UK employees took an average 9.4 sick days whilst the Office for National Statistics (ONS) found that 148.9 million working days were lost to sickness in 2024 alone - all of which underlines the productivity stakes. 

This is where Cyclescheme helps. Active commuting is linked to lower stress, better mood, and fewer long-term health risks. When you make cycling easy and affordable, you don’t just tick a CSR box; you help people feel and perform better, which shows up in fewer sick days and sharper work. And it helps with recruitment and retention because you’re making a daily pain point - commuting - healthier and cheaper. 

Talking of cost, from 6 April 2025, the employer National Insurance Contributions (NIC) rate is 15%. This means that every £1,000 processed through salary sacrifice arrangement now yields about £150 in Employer NIC savings. And Cyclescheme is free to set up and easy to run. You approve requests; Cyclescheme handles vouchers and end-of-hire. Proof of trust? 20 years in the market and 50,000+ UK employers onboard. Find out more here.

Cycle to Work scheme for staff: health, money and morale

Your people want commutes that don’t drain them. Cycling does the opposite.

Mental health

A University of Edinburgh analysis linked cycling to 15% fewer prescriptions for anxiety/depression over five years, and a BMJ Public Health study also found cyclists had the strongest health benefits among active commuters, including a 47% lower risk of death from any cause across the study period. 

Physical activity

Hop on a bike and your fitness goes up. Simple as that. Cycling is kind to your joints and easy to stick with. It’s low-impact, low-to-moderate intensity, and totally adaptable to your day. And, depending on your weight, speed, and the kind of riding you’re doing, you can burn up to 750 calories an hour.

Money

With Cyclescheme, employees save up to 47% on a bike, e-bike, and kit, paid from gross pay, interest-free. You can discover the exact numbers for your organisation here: www.cyclescheme.co.uk/calculator

Choice

Staff can shop in-store or online at 2,600+ retailers with Cyclescheme - more than any other UK provider - so they get the right bike and gear, fast. 

Greener commutes

Transport is the UK’s largest emitting sector (~29-30% of territorial emissions). Every trip swapped to a bike helps lower the carbon footprint as every kilometre pedalled generates roughly 21g of CO₂, which is less than a tenth of a typical car’s footprint.

What UK employers are doing right now (and why it works)

Here are simple, proven tactics you can borrow and make your own:

Lead with e-bikes for inclusivity

E-bikes flatten hills and make longer or hybrid commutes doable for beginners. Which means your employees get an easy, confidence-boosting ride that feels safe, straightforward, and stress-free from day one.

Give people time and a buddy

Flexible starts help riders dodge peak traffic and pollution. Pair up ‘bike buddies’ so new riders can learn the ropes.

Sort the on-site basics

Secure, covered bike parking and showers/change space are tiny facility wins that make a big behavioural shift possible. Top tip: if on-site space is tight, partner with a nearby gym for shower access.

Promote it simply

Give staff a one-pager: where to shop, what the limit is, how to apply, and who approves. Keep the ‘why’ front and centre: less stress, lower costs, more energy.

Set a sensible limit

There’s no technical upper limit for Cycle to Work packages; you set a cap that fits your people and budgets. Find out more here: www.cyclescheme.co.uk/cycle-to-work-scheme-any-price

Make it measurable

Track uptake, £ saved (staff + Employer NIC), sick-day trends, and CO₂ avoided. You’ll have numbers to share in board reports and ESG updates.

Want more inspiration? Check out these Cyclescheme case studies.

How Cyclescheme works in practice

You sign up (for free), staff apply, and you approve, Cyclescheme issues an eCertificate, your team collects their bike and kit from 2,600+ retailers, and repayments happen from salary (gross) over the agreed term. Cyclescheme manages the end-of-hire ownership process, so your payroll and HR teams aren’t buried in admin. See the steps and options at: www.cyclescheme.co.uk/employers

Why Cyclescheme? It’s the OG: 20 years of refining the model, shaping guidance, and keeping the process simple and compliant. Plus, it’s also scale-ready for the public sector. Cyclescheme is listed for ESPO framework access, which simplifies procurement.

A simple way to report impact

You don’t need perfect data to show progress. Start here:

• Uptake and inclusivity: Number of participants, % of workforce, split by location/department/role.

• Health proxy: Track average sick days vs. prior year. Don’t promise causation, just show the trend with your other wellbeing actions.

• Financials: Use your Employer NIC savings (15% in 2025/26) to show cost-positive impact. 

• CO₂ avoided: Use commuting distance estimates and staff mode-shift surveys. 

Common concerns and how UK employers solve them

“Cash flow is tight.”

You cover the upfront purchase, then recover it via monthly salary sacrifice. Need to smooth cash flow? Ask us about financing options. Employees cover modest interest; there’s no fee to you. Need some high-level guidance? www.cyclescheme.co.uk/how-cyclescheme-can-drive-cost-savings-and-tax-benefits

“What if someone leaves?”

If an employee leaves during repayment, the remaining balance is usually collected from final net pay, and Cyclescheme guides the end-of-hire ownership options. Your policy and payroll rules apply. Cyclescheme keeps the admin light.

“Is this just for cyclists?”

It’s for would-be cyclists too. E-bikes bring in people who haven’t ridden for years, or who live further out. That inclusivity is the point. We’re here to put more people on bikes. 

“Will staff actually use it?”

Yes, when you make it easy. Keep the message simple (“save up to 47%,” “choose from 2,600+ retailers,” “apply in minutes”) and give line managers the full details so they can champion it.

“What about safety?”

Invest in secure parking, offer a maintenance day with a local bike shop, and promote route-planning apps. The research is clear: the health benefits of cycling are significant; safer infrastructure and culture make it even better.

Getting started with Cyclescheme

• Register for free at www.cyclescheme.co.uk/employers

• Set a limit that works for your pay bands (remember, there’s no technical cap)

• Invite employees and share a one-pager (what to buy, where to shop, how to apply).

• Approve requests, recover costs via salary sacrifice, and log Employer NIC savings (15%)

• Track your wins (uptake, sick-day trend, £ saved, CO₂ avoided) and celebrate early adopters.

Small switch, big difference

Ready to roll? You can join for free, set your limit, and give your people a commute that pays back, financially and in how they feel, day after day.

If you want a happier, healthier, more productive team, start here.

FAQs

Cycle to Work scheme for employers: can we run it during probation?

Yes. Many employers allow it from day one, with line-manager sign-off. You set eligibility rules in your policy.

Cycle to Work scheme for employers: how does this affect statutory pay (SMP/SPP/SSP)?

Salary sacrifice schemes reduce contractual gross pay, which can impact earnings-related statutory payments. Check your payroll software and HMRC guidance before approving, and brief employees clearly.

Cycle to Work scheme for employers: can we set different limits for sites or roles?

You can. Keep it fair and transparent. Document the rationale (e.g. commuter distance, local retailer access).

Cycle to Work scheme for employers: do we need FCA authorisation?

Not typically. Cyclescheme’s model is designed to avoid that burden for standard use cases. If you’re unsure, ask Cyclescheme to review your setup.

Cycle to Work scheme for staff: can I get accessories only?

Yes, cycle helmets, locks, lights, mudguards, reflective clothing, safety equipment, and more. Many employers permit ‘accessories-only’ packages.

Cycle to Work scheme for staff: are electric bikes included?

Yes, most employers include them. E-bikes must meet EAPC rules (pedals, 250W max, assist cuts off at 15.5mph). 

Cycle to Work scheme for staff: can I use the bike outside work?

Yes. The rule of thumb is that at least 50% of use is for work journeys (to, from, or between sites). Discover more here: www.cyclescheme.co.uk/the-rules-of-cycle-to-work

Cycle to Work scheme for employers: what about leavers mid-hire?

Normally, you recover the remaining balance from final net pay and then complete the end-of-hire process. Cyclescheme can guide you.

Cycle to Work scheme for staff: are there travel restrictions for e-bikes?

Some transport networks restrict non-folding e-bikes on services. For example, TfL bans non-folding e-bikes across its network. Check local rules here.

Cycle to Work scheme for employers: how do we show ROI quickly?

Track uptake, Employer NIC savings at 15%, a 6–12-month sick-day trend, and estimated CO₂ avoided. Use the Cyclescheme staff calculator to promote employee savings: www.cyclescheme.co.uk/calculator