November 26, 2025
Cycle to Work Alliance: Budget response 2025
Steve Edgell, Chair, Cycle to Work Alliance:
“Following speculation, we are happy to confirm no changes to the Cycle to Work Scheme have been announced in the Chancellor’s Budget this afternoon.
Separately, the Chancellor has recognised that one of the greatest pressures on household budgets is the cost of commuting. We will continue to work closely with Government to ensure the Scheme remains one of the most popular and successful workplace initiatives – helping save commuters costs by over £1,200 every year.
This follows endorsement of the Scheme by Transport Minister Lilian Greenwood this Autumn, who called the Scheme “a real success story, helping millions of people choose a healthier, greener way to travel while boosting local economies and supporting jobs”.
The Cycle to Work Scheme delivers a net total of £573 million in annual economic benefits across retail, productivity, health, and household savings. This is real money with real impact:
- Retail & tax revenues: In 2023/24, employees used the Scheme to purchase £219 million of bikes and accessories, generating £43.8 million in VAT – including £8.3 million that simply wouldn’t have happened without the Scheme. That spending has provided a much-needed lift to a cycling sector that has faced tough trading conditions in recent years.
- More pounds in people’s pockets: For employees who switch from using their car to travelling by bike, average commuting cost savings reach £1,262 per year – money that flows straight back into household budgets and local economies.
- Workforce productivity: Employees newly commuting by bike save their employers £63 per person per year through reduced sickness absence, plus £115 per person in productivity gains from improved attendance and consistency. Together, that’s £37 million a year back into the economy.
- Cleaner, greener commutes: By enabling healthier travel choices, the Scheme helps reduce transport emissions and supports a more resilient, lower-carbon workforce.
