The Pros and Cons of Cycle to Work Schemes: Everything Employers Need to Know
Looking for a new employee benefit that genuinely supports wellbeing, saves money, and shows your commitment to sustainability? If so, it may be time to explore the pros and cons of Cycle to Work Scheme options for your business.
The Cycle to Work Scheme with BHN Extras, known as Cyclescheme, is one of the UK’s most popular employee benefits - and for good reason. It delivers real savings for employees, the administration is simple for employers, and it supports healthier, greener ways of getting to work.
In this guide, we break down the pros and cons of Cycle to Work Scheme participation, so you can decide if it’s right for your organisation.
We’ll cover:
- What the Cycle to Work Scheme is
- The pros: the benefits of getting your team pedalling
- The cons: potential challenges to be aware of
- How to make cycling part of your workplace culture
What is the Cycle to Work Scheme?
The Cycle to Work Scheme is a brilliant UK government initiative designed to encourage employees to ditch their car and cycle to work instead.
Through the scheme, employers help employees save up to 47% on a brand-new bike and cycling equipment. It’s a salary sacrifice benefit, meaning employees also save on tax and National Insurance while spreading the cost over time.
Essentially, employers ‘buy’ the bike and any cycling accessories (up to a pre-agreed limit). The employee then hires the bike back over an agreed hire period (usually 12 months), spreading the cost of the hire by making monthly salary sacrifice payments. This structure is what makes the scheme so appealing when employers are weighing the pros and cons of Cycle to Work Scheme implementation.
At the end of the hire period, employees have several ownership options:
- Extend the hire period (at no cost to the employer)
- Pay an ownership fee to take full ownership of the bike immediately
- Return the bike to Cyclescheme
We explain these options in more detail further on.
Ready to get your team pedalling? Create your BHN Extras account for free today, and if you have any questions, our team is here to help.
Pros of Cycle to Work Scheme for Employers
When weighing the pros and cons of Cycle to Work Scheme participation, there are plenty of positives for employers. Not only does the scheme support a happier, healthier, and more productive workforce, but employers also recover the full cost of the bike through salary sacrifice and benefit from a National Insurance Contribution saving of up to 15% of the bike’s value.
Beyond financial advantages, cycling helps improve employee health, cuts commuting costs, and reduces environmental impact. In fact, 82% of Cyclescheme participants say they feel less stressed after commuting by bike*.
It’s no surprise that over 50,000 employers already offer Cyclescheme in their employee benefits packages. There are many pros to joining Cyclescheme, and we’ve listed our favourites below.
Improves employee health and wellness
When employees cycle to work, they’re not just burning calories. They’re improving cardiovascular health and boosting their mental wellbeing too.
The result? A more energised, motivated, and focused workforce. Healthier employees also tend to take fewer sick days, which supports productivity and keeps teams running smoothly.
From a wellbeing perspective, this is one of the strongest pros of Cycle to Work Scheme participation.
Environmental sustainability
Introducing the Cycle to Work Scheme helps reduce your company’s carbon footprint by encouraging greener commuting choices.
This visible commitment to sustainability supports your Corporate Social Responsibility (CSR) goals - a huge plus to clients and potential hires. For many businesses, this environmental impact is a key factor when assessing the pros and cons of Cycle to Work Scheme adoption.
Attracts and retains talent
Companies that prioritise employee wellbeing and promote active lifestyles have a healthy advantage when it comes to attracting and hiring new talent.
Desirable benefits - especially benefits made simple like Cyclescheme - position your business as a great place to work. It shows that you care about your people and are willing to invest in benefits they’ll actually use.
A huge choice of bikes and e-Bikes
Cyclescheme is partnered with more independent bike shops and retailers than any other cycle scheme.
That means, when you sign up with us, your employees can choose from a wide range of bikes and other equipment, including road bikes, mountain bikes, and electric bikes. This flexibility makes the scheme accessible to commuters with different needs, fitness levels, and travel distances.
No cost to employers
While employers cover the initial cost of the bike, this is repaid through salary sacrifice.
As mentioned earlier, employers also benefit from National Insurance savings of up 13.8% on the value of the cycling equipment, which makes the scheme cost-positive for many businesses.
Completely free to join
Cyclescheme is the UK's most popular bike-to-work scheme provider for good reason. Completely free to join, we have the largest amount of bike shops and retailers for your employees to shop at.
Better still, when you choose Cyclescheme through BHN Extras, you also get access to our employee benefits platform with extra free perks, making everyday savings even easier for your team!
Access to even more free benefits
As BHN Extras is a free-to-use employee benefits platform, there is no sign-up cost, no monthly usage charge, no minimum contract period, and no per-employee fee.
When you join Cyclescheme through our BHN Extras benefits platform, your employees also gain access to benefits like:
- bYond (employee cashback card)
- Extras Discounts (discounted gift cards/vouchers)
- 14 days free insurance on their bike
- Access to the Cyclescheme Strava Club
Easy end of hire
When employees reach the end of their hire agreement, we handle the process for you. It’s as simple as that.
Employees are offered three ownership options:
Option 1: Own it later (extended hire period)
For a small cost (up to 7% of their Cyclescheme package value), employees can opt to extend their hire agreement for an additional 3 years with no further repayments. This is the most popular option for many employees, as they take automatic ownership of their package after the 3 years are up. By extending the hire period, employees can save up to 47% on a bike's retail price.
Option 2: Own it now (pay ownership fee)
Employees can take immediate ownership of their bike by making a one-off payment for the current market value, in accordance with HMRC requirements.
This ownership price is calculated as a percentage of the scheme Certificate's original price.
Option 3: Return package
If employees no longer want their bike and cycling equipment, they can return it to Cyclescheme. There will be no additional payments, but employees will not have their salary sacrifice contributions returned.
Cons of Cycle to Work Scheme participation for employers
It all sounds too good to be true, so let’s look at the potential cons of Cycle to Work Scheme participation as well.
The setup process
A common question: “Is it complicated to set up?”
With some providers, maybe… but with Cyclescheme, we keep things simple. Our team handles the admin, so after answering a few quick questions we’ll have you up and running (or should we say rolling) in no time!
Getting staff involved
Not every employee will jump at the opportunity immediately.
That’s why you get access to our resources portal, which is packed with free marketing materials to help promote this great benefit internally. Even if uptake is low initially, there’s no cost to you, and many employers find participation grows over time with awareness.
Bike storage
Companies must consider where staff will store their bikes during work. You might need to install bike racks or lockers. Some companies also look into installing showers so staff can freshen up at the office. A small investment in facilities can lead to big returns with employee participation and satisfaction.
Upfront funding of bikes
If high involvement is expected, some companies might be concerned about funding the cost of the bikes upfront.
Another benefit of choosing Cyclescheme as your Cycle to Work Scheme provider is that you don’t have to worry about how many employees join in. We have systems that mean businesses can pay for the bike(s) once salary sacrifice payments start.
Bike and cycling gear insurance
Insurance is simple and included with Cyclescheme. We’ve partnered with award-winning cycle insurance provider, Bikmo, to give all Cyclescheme users 14 days free insurance on their new bike and cycling gear, plus exclusive discounts on ongoing insurance policies.
Another reason Cyclescheme is the UK’s most popular Cycle to Work Scheme provider!
Step by step guide to joining our Cycle to Work Scheme
Interested in joining Cyclescheme for free and enjoying the extra benefits it includes? Just follow these easy steps:
Step 1: Join Cyclescheme
Click here to join Cyclescheme and get access to your new free employee benefits platform.
Step 2: Get the Word Out
Use our free marketing materials to tell your staff about this amazing benefit.
Step 3: Get Shopping
Your team chooses their cycling gear from one of our 2,600 retailers and sends a request through the online system. You approve this in one easy click.
Step 4: Distribute Vouchers
Once approved, your employee will be emailed with a scheme voucher they can use to purchase their chosen bikes and gear and start cycling to work!
Weighing up the pros and cons of our Cycle to Work Scheme
Looking at the full picture, the pros and cons of our Cycle to Work Scheme are clear. For most employers, the benefits far outweigh the challenges. It’s a simple, cost-effective way to support employee wellbeing, reduce environmental impact, and deliver real savings without admin stress.
If you’re ready to make benefits simpler and help your employees ease living costs on things they’ll actually use, we’re here for you. Get in touch, and let’s make it happen.
Pros and Cons of Cycle to Work Scheme FAQs:
Do the pros and cons of our Cycle to Work Scheme differ for small businesses? +
No. The scheme works well for both small and large employers. In fact, small businesses often benefit most thanks to low admin, zero joining costs, and immediate cost savings through salary sacrifice, making it a practical employee benefit without added complexity.
Does employee location affect the pros and cons of our Cycle to Work Scheme? +
Location can influence how employees use the scheme, but it doesn’t reduce its value. Whether staff commute via public transport, drive part-way, or use local cycle paths and lanes, flexible Cyclescheme options, including different bikes and accessories, help meet a wide range of commuting needs.
How can employers evaluate whether the pros outweigh the cons? +
Most employers look at engagement, employee feedback, and participation levels alongside financial returns. Factors like reduced cycling costs, improved wellbeing, and contributions to sustainability goals, including lower carbon emissions, often become clear indicators of long-term value.
Do the pros and cons of Cycle to Work Schemes change over time? +
Yes. Early questions around setup or awareness usually fade, while long-term benefits grow stronger. Over time, employers often see improved health and fitness, increased engagement, and positive knock-on effects such as reduced traffic congestion around the workplace.
Is the scheme worthwhile with low employee uptake? +
Yes. There’s no obligation for employees to join, and participation often grows as awareness improves. Even modest uptake can still deliver value through salary sacrifice schemes, support for active commuting, and the option for employees to offset everyday cycling costs.
What’s the biggest misconception about the pros and cons of Cycle to Work Schemes? +
Many assume the scheme is complex or costly. In reality, Cyclescheme is designed to be low-effort, compliant, and easy to manage, with clear processes that support cycle safety, flexible participation, and simple administration for employers.
Do the pros and cons of Cycle to Work Schemes depend on industry? +
Not significantly. The scheme works across sectors as long as employees have a regular commute. Whether staff travel short distances, combine cycling with other transport options, or ride in varying weather conditions, the exercise benefits and flexibility of the scheme remain consistent.
*2017 Cyclescheme survey of 1,000 participants.
