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Employers can save 15% NIC with a Cycle-to-Work Scheme


Posted on: Thursday August 03, 2023

As the summer holidays stretch on, August 3rd celebrates Cycle-to-Work day as a reminder that we all need to dust off our bikes and embrace pedal power. This year there’s a subtle but distinct spin…  Since more businesses have embraced flexible and hybrid working patterns, the commute in 2023 looks rather different to pre-pandemic commutes. It’s not about focussing on cycling to work anymore but cycling generally - cycling to the shops, to the doctor’s surgery, to school... whatever it is – it’s time for companies to embrace Cycle-to-Work schemes and realise the benefits to both company and employees.


Why should businesses be encouraging Cycle-to-Work?

Offering a Cycle-to-Work scheme can help boost employee engagement and morale, as it shows that the employer is invested in their employees' well-being and willing to support them in achieving their personal goals. Promoting any cycle-to-work initiatives within job descriptions is a great way to attract eco-conscious professionals. It’s likely to appeal to a younger jobseeker but the appeal will be across generations. Many job-seekers will be looking at a company’s eco-credentials when considering applying for a role and this could set it apart from the competition.

What’s more, it encourages a healthier lifestyle, a healthier work-life balance and let’s face it, has a positive impact on the environment too.


Focus your communication

Of course businesses will be looking at ways to promote this all year round, but a key focus for Cycle-to-Work Day is that it provides a great opportunity for businesses to consider how to support and encourage their workers to take a different route to work and beyond. Cycling offers numerous benefits for individuals, businesses, and society as a whole.

Let's explore the advantages in terms of environmental, social, and financial aspects:


Environmental Benefits

Reduced Emissions: Cycling is a zero-emission mode of transportation, meaning it produces no greenhouse gases or pollutants during use. By encouraging cycling, businesses can significantly reduce their carbon footprint and help achieve the UK's net zero targets.

Decreased Air Pollution: Cycling helps reduce air pollution, which is crucial for improving air quality and mitigating respiratory and cardiovascular health issues.

Less Traffic Congestion: More people cycling means fewer cars on the roads, leading to reduced traffic congestion and smoother traffic flow. This contributes to lower fuel consumption and emissions from idling vehicles.


Business Benefits

Reduced Costs: Businesses can save money by promoting cycling among employees. Fewer employees driving to work means lower expenses on parking, fuel reimbursements, and vehicle maintenance.

Increased Productivity: Regular physical activity, such as cycling, has been linked to improved focus, creativity, and productivity among employees. Encouraging cycling can lead to a more energized and engaged workforce.

Positive Corporate Image: Emphasising sustainable practices, such as promoting cycling, helps build a positive corporate image. This, in turn, can attract environmentally conscious customers and investors who support businesses aligning with ESG goals.


Social Benefits

Improved Public Health: Regular cycling improves cardiovascular fitness, strengthens muscles, and enhances mental well-being. Encouraging employees to cycle can lead to a healthier and happier workforce, reducing healthcare costs and absenteeism.

Enhanced Community Interaction: Cycling fosters a sense of community as people interact more with each other during their journeys, leading to stronger social ties and a more cohesive society.

Equitable Access to Transportation: Cycling is an affordable mode of transportation, offering greater mobility to individuals who might not have access to their own vehicles or public transport.


Societal Benefits

Safer Roads: Increased cycling can lead to a heightened focus on road safety and the development of better infrastructure for cyclists, benefitting all road users.

Economic Benefits: As the cost-of-living crisis continues, individuals are constantly looking for ways to save pennies. Implementing a Cycle-to-Work scheme not only helps your workers cut commuting costs, but also enables them to spread the cost of their purchase via salary sacrifice, while making tax and NI savings too. 


The Hapi Benefits for employers

The employer saves up to 15.05% on NI for each participating employee per year

• Sets the scheme limit for the value of bikes allowed

• Choose a scheme length of 12 or 18 months

• Simple, easy-to-set-up benefit

• Free marketing material to promote the scheme

• HR hub to approve or decline employee orders

• Choose to pay upfront for the bikes or use a finance provider and pay back monthly.


How the Cycle-to-Work Scheme can help

The Cycle-to-Work scheme is a government-backed initiative in the UK that allows employees to purchase a bike and cycling accessories through salary sacrifice. The Cycle-to-Work scheme can be a valuable tool for employers looking to support their employees' well-being and promote sustainable transport. By encouraging cycling to work, employers may be able to reduce stress levels among employees and improve their overall health and job satisfaction.

So, this Summer, get behind the Cycle-to-Work scheme that promotes the numerous benefits of cycling and encourages people to embrace this eco-friendly and healthy mode of transportation. By leveraging a Cycle-to-Work scheme, you can enable your employees to explore the wonders of cycling, whether it's for commuting, fitness, or leisure.


If you would like to find out more about the scheme, download our Cycle to Work brochure, or contact us for no-obligation advice from a Personal Group Benefits Expert.


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