October 22, 2025
The Cycle to Work Scheme: proof that smart policy pays back
By Steve Edgell, Chair of the Cycle to Work Alliance
For more than 25 years, the Cycle to Work Scheme has helped people unlock the freedom, health benefits and everyday practicality of cycling to work. Today, the Alliance is proud to share new independent research that quantifies what many of us have long felt: this is one of the UK’s most effective workplace benefits for households, employers, high streets and the wider economy.
Endorsing the research, Local Transport Minister, Lilian Greenwood, said: “The Cycle to Work Scheme has been a real success story, helping millions of people choose a healthier, greener way to travel while boosting local economies and supporting jobs.
“This new research shows just how powerful active travel can be, and that’s why this Government is investing £616m over the next four years, to help make walking and cycling a safer and easier way to get around, wherever you live and help grow the economy, so we can deliver our Plan for Change.”
A £573 million annual boost to the UK economy
The new research shows the 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.
Behaviour change, at scale
Since launch, the Scheme has helped over 2 million people access a bike. In 2023/24, 199,000 employees participated; that rose to 209,000 in 2024/25. Crucially, 38% of users are new to commuting by bike — hard evidence that the Scheme doesn’t just subsidise existing behaviour; it changes it.
Why it works
It’s simple and hugely rewarding. Employees get hassle-free access to bikes and essential kit through salary sacrifice, with clear savings.
It tackles multiple challenges at once. Household cost pressures, business productivity, public health, congestion and emissions — the Scheme moves the needle on all of them.
It supports British retail. Consistent demand sustains bike shops and suppliers, anchoring skills and jobs on high streets nationwide.
25 years on: time to widen access
Last year, the Alliance marked the Scheme’s 25th anniversary by launching a manifesto calling for government to unlock access for lower earners and widen eligibility for the self-employed. These are practical, targeted reforms that would make the Scheme fairer and amplify its proven benefits — especially for people who would gain most from lower commuting costs.
What happens next
The evidence is clear. A policy that:
- Delivers £573m in annual economic benefits,
- Drives behaviour change (with 38% new cycling commuters),
- Strengthens a vital retail sector, and
- Saves money for households and employers alike,
…is a policy worth backing – and expanding.
On behalf of the Cycle to Work Alliance, I’m calling on policymakers, employers and industry partners to work with us to open up the Scheme to more people. Let’s make it easier for everyone – including lower earners and the self-employed – to choose a cheaper, healthier, cleaner commute.
Because when more people can cycle to work, everyone benefits.
