Cyclescheme is the UK's most popular cycle to work benefit, creating more cyclists than any other provider.

The Benefits of Cycle to Work Scheme: A Comprehensive Guide

Discover the benefits of Cycle to Work Scheme. From saving money to boosting well-being, it’s easy to get started with Cyclescheme.

Person commuting to work by bike at sunrise showing the benefits of cycle to work scheme

The Cycle to Work Scheme has become one of the most effective and accessible ways for employees across the UK to switch to greener, healthier commuting. With benefits spanning from financial savings to improved well-being and productivity, it’s no surprise that more than a million people have already taken advantage of it.

Whether you’re just hearing about the scheme or trying to understand how it works, this guide explores the benefits of Cycle to Work Scheme, with a particular focus on Cyclescheme, the UK’s original and most trusted provider.

Financial benefits: Save up to 47%

One of the biggest draws of the scheme is the tax savings. Through a salary sacrifice arrangement, you agree to give up part of your gross salary in return for a bike and accessories. Because the payments are taken before Income Tax and National Insurance, you save up to 42% as a basic-rate taxpayer, or 47% if you're a higher-rate taxpayer. That means a £1,000 bike might cost you just £530 over 12 months.

According to the Office for National Statistics, offering this benefit not only helps employees save significantly, but it's also a highly appreciated perk in the workplace.

Happy commuter showing mental and physical benefits of cycle to work scheme

Health benefits: Physical and mental well-being

Cycling is one of the best forms of daily physical activity. It strengthens your heart, lungs and muscles while being low-impact on joints. The University of Glasgow studied over 250,000 commuters and found that cycling to work cuts the risk of premature death by 41%, cancer by 45%, and heart disease by 46%.

And it’s not just your body that benefits. The same study also found that people who cycle are significantly less likely to suffer from stress or need to take mental health medications.

An article in The Times also shared that cyclists are 20% less likely to be prescribed psychiatric medication than non-cyclists. 

Bike on a bike lane only, showing environmental benefits of cycle to work scheme

Environmental impact: Greener, cleaner, smarter

Transport is the largest contributor to the UK’s carbon emissions, with commuting playing a significant role. By swapping the car for a bike just a few times a week, you’ll dramatically cut your personal carbon footprint.

A 2024 study by Imperial College London found that low-traffic and cycling-friendly transport policies have health gains 100 times greater than their costs, showing that active travel is not only better for the planet but also saves the NHS money.

Whether you're concerned about climate change, local air quality, or the rising cost of fuel, cycling is a simple and powerful way to do your bit.

Reduced absenteeism and sick days

Healthier employees mean fewer sick days. Research published by BHN Extras shows that employees who cycle to work take up to 4.5 fewer sick days per year compared to their non-cycling colleagues. That’s not just good for your employer, it’s great for your own peace of mind and productivity.

A productivity boost for your workday

Starting your day with exercise can give you a natural energy boost, improve concentration and help you arrive feeling alert and ready to work. According to a government evaluation of the Cycle to Work Scheme, employers reported higher levels of employee satisfaction, punctuality, and motivation among cyclists.

Some companies, like Abel & Cole, have found that employees who cycle arrive happier and more focused, and avoid the daily stress and unpredictability of driving or taking public transport.

Cost-positive for employers too

It's not just employees who benefit. Employers save too. Because employees reduce their gross salary, employers save up to 13.8% in Employer National Insurance Contributions on every hire agreement. That’s around £138 for every £1,000 processed through the scheme.

Use the Cycle to Work Employer Benefits Calculator to see what your organisation could save.

Employers also recover the full cost of the bike and enjoy a more productive, healthier workforce. Plus, there’s no cost to set up Cyclescheme - it’s entirely free for businesses to join.

Supporting corporate social responsibility (CSR) and ESG goals

As sustainability and environmental governance rise up the business agenda, offering a cycle to work scheme is a tangible, practical way to meet CSR and ESG objectives. Encouraging staff to cycle helps reduce your company’s overall environmental impact, supports community health, and contributes to a culture of wellbeing.

A government study found that employers see Cycle to Work as an essential part of their employee value proposition, especially when trying to attract socially-conscious talent.

Flexibility and inclusivity: Enter the e-bike

With the removal of the previous £1,000 cap, Cycle to Work schemes such as Cyclescheme now enable higher-value e-bikes and accessories to be included in the scheme. That’s great news for those with longer commutes, health conditions, or who just want a more accessible, practical cycling solution.

E-bikes make it easier to:

  • Tackle hills or longer distances

  • Avoid arriving sweaty

  • Continue cycling later in life

Cyclescheme’s support for e-bikes makes commuting more inclusive and more achievable for more people.

Easy to join, simple to use

Cyclescheme makes it easy for businesses of all sizes to get started. From setup to ongoing support, employers can rely on:

  • Free promotional materials

  • Hassle-free admin via a digital platform

  • No complex ownership process. Cyclescheme handles it for you

The setup process is quick, and many employers report that the scheme is “low effort, high impact”. Learn more about how Cyclescheme supports employers here.

 
Employees at UK company enjoying benefits of cycle to work scheme with Cyclescheme

Real-world success: Case studies from across the UK

Cyclescheme has worked with thousands of organisations, from the NHS and local authorities to universities and small businesses, helping millions of employees access affordable bikes and improve their commute.

For example:

  • Sellafield Ltd enabled 3,000+ employees to join the scheme, investing over £2 million in bikes and accessories

  • Southampton University saw strong annual uptake and moved to Cyclescheme for its wider range of bike choices

  • NHS Forth Valley built a full cycling culture with Dr. Bike clinics, led rides and secure facilities, all underpinned by Cyclescheme

Explore more Cyclescheme case studies here.

Final thoughts: A smarter way to commute

Whether you're looking to cut costs, boost your health, reduce your carbon footprint, or just enjoy a better commute, the Cycle to Work Scheme has never made more sense. And with Cyclescheme, the UK’s original, most experienced provider, you’ll get expert support, flexible choices, and everything you need to get rolling.

Cyclescheme has helped more than one million people take the leap into cycle commuting. Join them and discover the real-world benefits of the Cycle to Work Scheme for yourself.

Start your journey with Cyclescheme today.

Learn more at:

www.cyclescheme.co.uk/employers

www.cyclescheme.co.uk/employers#register-now

www.cyclescheme.co.uk/employers#employer-benefits

www.cyclescheme.co.uk/employers/case-studies

 

Cycle to Work Scheme FAQs

Can I use the Cycle to Work scheme if I already own a bike?

Absolutely! If you’re already cycling but your bike’s seen better days, the scheme is the perfect way to upgrade, whether you’re eyeing a shinier model, need a sturdier frame, or want to swap to an e-bike for longer rides. Plus, you can use your voucher on accessories too (e.g. new helmet, lights, or panniers).

Are there any lifestyle benefits of Cycle to Work Scheme beyond commuting?

You bet. The benefits of Cycle to Work Scheme aren’t just for Monday–Friday. You can use your new bike for weekend rides, trips to the shops, or family outings. It’s a great way to weave more activity into your everyday life. Who doesn’t love a side of fresh air with their errands?

Does the Cycle to Work scheme encourage long-term behaviour change?

Yes. Most employees who get a bike through the scheme keep cycling well beyond the initial 12 months. Once it becomes part of your routine and you realise how much quicker (and cheaper) it is than sitting in traffic, it tends to stick.

Is the Cycle to Work scheme just for fitness fanatics?

Not at all. The benefits of Cycle to Work Scheme are designed for everyone, whether you’re Lycra-loving or just starting out. From comfy city bikes to pedal-assisted e-bikes, there’s something for all abilities, body types, and confidence levels.

Will using the Cycle to Work scheme affect my pension or other salary-based benefits?

In most cases, the impact is minimal or non-existent. But because the scheme works through salary sacrifice, it’s worth checking how it might affect things like your pension contributions, statutory pay, or other salary-linked perks. If in doubt, have a quick chat with HR.

What are the social benefits of the Cycle to Work scheme in the workplace?

Cycling’s a great conversation starter. It can help build connections between colleagues, create shared routines, and even spark friendly competition, like who cycled in furthest, fastest, or with the muddiest back tyre! Expect more smiles, more chats, and a little more camaraderie.

Can the Cycle to Work scheme help reduce stress levels?

Yes! Swapping a packed train or stressful drive for a calming ride can do wonders for your headspace. Many cyclists say their commute becomes the best part of their day. It’s your own daily buffer. A chance to unwind before and after work.

How does the Cycle to Work scheme support local businesses?

When you use your Cyclescheme certificate at an independent bike shop, you’re not just helping yourself, you’re supporting your local economy too. With 2,600+ retailers to choose from (many of them independents), the benefits of Cycle to Work Scheme extend beyond the office.

What makes Cyclescheme different from other Cycle to Work providers?

We’ve been leading the pack for over 20 years, work with more retailers than anyone else, and offer way more extras (like free insurance, exclusive discounts, and e-bike options). Plus, we sit on the board shaping scheme legislation, so you’re in expert hands.

Why are the benefits of Cycle to Work Scheme more relevant than ever in 2025?

With the rising cost of living, growing focus on mental health, and climate action firmly on the agenda, the benefits of Cycle to Work Scheme tick a lot of boxes right now. It's affordable, flexible, sustainable, and surprisingly fun, making it one of the smartest work perks around.





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