Cycle to Work scheme hits new record

Still waiting for my employers to complete signing up and give me the go-ahead.

I've got my eyes on a folding electric bicycle...

Folding because I live in a flat up three flights of stairs, and electric to take the effort out of a couple of hills on my commute so I'm not sweaty on arrival.

I used the scheme back in 2007 in a previous job and it basically got me into cycling. My second (and current) bike I actually bought on interest-free credit from the shop as - unbelievably, for a government initiative - like many of my fellow civil servants I can't access the scheme (don't ask).

Based purely on my own experience, I think the scheme can get folk off their bum. But I suspect, as others do, that n+1 may well be behind the rise in takeup.

Also, I flatter myself that I'm not a complete thicko but I still don't really understand how the finances of it work, what with leasing, final payments and so on.

My Brommie purchased on BTW in 2012 gets used every working day.

My Langster has been used just the once so far on the commute, but its only January!

I don't see the scheme as unfair - I contribute to tax income, and this is just a little perk back, and the BTW revenue seen by the bike shops help keep their employees in their jobs. It's all good.

I have to agree with the argument that the benefit accrues most to those who generally need it least....
Basically it is another example of our screwy tax system. Still, I will continue to use it as and when necessary

Quite agree with you Nixster, I shan't lose any sleep either.

It is just that when one considers the entire situation, of course, any such grant/tax break/loan from the Govt. always does go back to the Govt. 100% - so long as it is not sat upon as savings, but is spent and does not leave the UK. It is our money being spent on us.

Really it is just a question of how much of it is achieving the desired objective this time round. That is what I was wondering. How effective is this at actually directly getting more people to commute by bike? How well is our money being used to build our nation in the way that we would like?

None of this is in any way a criticism of the scheme.

If all 165,000 people went for the full £1,000 and were all higher rate tax payers the lost revenue to the exchequer would be less than £70 million. In practice significantly less than that obviously.

I can see an argument about how that would be better spent on cycle infrastructure for all but in reality if that were distributed across the country it wouldn't add up to one decent scheme per local authority.

In the context of the other nonsense the government spends my/our money on or indeed a trunk road budget in the billions the fact that some of the money goes on n+1 does not keep me awake nights.

Shame I've never managed to time it right to take advantage!

In fairness, out of the 10 or so people I know who bought bikes on thes scheme.....2 actually sometimes commute on them, though most spend the grand or so every year, whilst still commuting on the first one.

On the fairness, they are getting tax paid discounted, if you don't pay tax, how can you get a discount on it?

Sole traders using a bike for business travel can buy it without tax and net of VAT in most cases.

it is really good to see this scheme being taken up so well.

I do also share the thoughts of Neil753 though.

How many of these bikes will actually be commuted upon?

How many are being taken up by people that already cycle, don't need another bike, have got money and will take up a good tax break when they see one?

I think when one considers bikes like this;

http://www.edinburghbicycle.com/products/revolution-streetfinder-13?bct=...

that many like to commute on, or this;

http://www.edinburghbicycle.com/products/revolution-country-traveller-13...

Which is capable of covering long distances very comfortably and briskly. A thousand pounds seems an ample amount to achieve the intended purpose.

It's great to see this scheme encouraging at least some people to take up cycling but I suspect that, to a large extent, it's being used by people that already cycle.

It's good that there is a scheme, but it can't be right that students, pensioners, unemployed people, sole traders, etc., are all effectively having to either pay more in tax, or receive less in benefits, in order for more than a few higher rate taxpayers, who may not even cycle to work, and perhaps have plenty of bikes to choose from already, to receive a subsidy of up to 42%.

There must be a better targeted a way of distributing this benefit.

The £1000 'limit' is governed by the consumer credit act. In effect the employer is giving credit to the employee to buy the bike and if they give credit over £1000 they have to be licensed to do so. So it's not a limit on the scheme as such.
If you work for a company that is already licensed to give credit, there is no reason why they can't increase that figure, although I'm sure that would involve more paperwork and you have to bear in mind that the employer has to stump up the cash up front.

It's a great scheme, but I think it's time the 1000quid limit was raised.

Would love to see something like this in the States