The Cycle to Work Scheme has been making bikes more affordable for over two decades — a UK government initiative that lets employees buy a new bike and equipment tax-free, saving up to 42% of the cost. Over 1.6 million people use it every year. Here's how it works, how much you can save, and why it's the smartest way to buy a better bike.
How the Cycle to Work Scheme works
Your employer buys the bike and equipment on your behalf, and you lease it back through salary sacrifice — typically over 12 months. Because the cost comes out of your gross salary, you pay less income tax and National Insurance. At the end of the lease you can buy the bike at fair market value or extend the lease. The premise is simple: lower the financial barrier, and more people ride.
How much can you save?
The savings scale with your tax band: a standard-rate taxpayer saves around 32% on a new bike and accessories; a higher-rate taxpayer saves up to 42%. On a quality bike in the £5,000–£7,000 range, that's a substantial difference — and spread over 12 monthly repayments from gross salary, a top-tier bike becomes genuinely accessible. Exact figures depend on your tax situation and your employer's scheme.
Setting it up at work
Plenty of scheme providers will handle the admin for stretched HR departments, or your company can run it directly following government guidelines. If your employer isn't signed up yet, it's usually a quick conversation.
Why buy a better bike with it
Mid-to-high-end bikes aren't just more durable — they're lighter, shift more smoothly, brake better and simply make commuting more enjoyable. If the bike makes you want to ride, you'll keep riding. That's the whole point.
The Pearson advantage
As the world's oldest cycling company — founded in 1860 — we build bikes a little differently. Every Pearson is tailored to its rider, handbuilt with care and typically delivered in under 14 days: custom-level fit without custom-level waiting. Pair the scheme's savings with a professional bike fit and you'll have a commuter you genuinely look forward to riding.
Better for you, better for the air
Cycling to work cuts car miles and carbon, and even a 20-minute ride improves cardiovascular fitness, strength and mental wellbeing. Savings on the bike, savings on fuel, and a daily dose of exercise — it's hard to argue with.
Thinking of using the scheme with us? Browse the range or get in touch at [email protected] and we'll walk you through it.
