Discover how much money you can save by cycling to work with the Cycle to Work Scheme. Compare costs, tax savings, and real-life examples for bikes and e-bikes.

Cycling to work isn’t just good for your health and the environment, it’s also a smart financial move. When you combine the natural cost savings of cycling with the benefits of the cycle to work scheme, the results can be surprisingly significant.

Let’s break down the real-world savings and how Cyclescheme can help you maximize them.

The true cost of commuting

Before we look at savings, it’s worth understanding how much commuting actually costs. If you drive to work, you’re paying for:

• Fuel

• Insurance

• MOT and servicing

• Depreciation

• Parking fees

Even public transport isn’t cheap. A monthly rail pass in many UK cities can cost over £150. Over a year, that’s £1,800 or more, and that’s before you factor in fare increases.

How much can you save by cycling?

Switching to a bike can eliminate or drastically reduce these costs. Here’s a rough breakdown of potential annual savings: These figures don’t even include the tax savings you get through the cycle to work scheme.

* Estimated annual costs and savings are based on external data from ReightGoodBikes.co.uk and related UK transport cost analyses. Figures may vary depending on location, usage, and individual circumstances.

What’s included in the bike costs?

• Maintenance: Tyres, brake pads, servicing.

• Accessories: Helmet, lights, lock, mudguards, etc.

• Insurance: Optional but recommended, especially in urban areas.

• Electricity (e-bike only): Charging costs based on average UK electricity rates.

Even at the high end, cycling remains significantly cheaper than driving or public transport, and with the cycle to work scheme, your upfront costs are reduced even further.

What Is the Cycle to Work Scheme?

The cycle to work scheme is a government-backed initiative that lets you get a bike and accessories through your employer, paying via salary sacrifice. This means the cost is taken from your gross salary, before tax and National Insurance, so you pay less overall.

How Does the Cycle to Work Scheme Work?

Here’s how it works in practice:

1. Choose your bike and accessories.

2. Apply through your employer’s Cyclescheme portal.

3. The cost is deducted monthly from your gross salary.

4. At the end of the hire period, you can choose to own the bike for a small fee.

This structure means you save up to 47% depending on your tax rate and the ownership option you choose.