In a letter to Chancellor Rishi Sunak, a range of groups including the Federation of Small Businesses (FSB) and the Co-op, have called for the cycle to work scheme to be extended to self-employed and lower paid workers. Such workers are currently excluded under the scheme’s rules, but the letter argues that they are among those that could benefit from it the most.
The scheme, which has been running for over 20 years, enables people to pay for bicycles and related accessories in tax-free installments from their salaries. This enables users to save 25 to 40 per cent, with more than a million having taken part since it was launched. However, rules currently stipulate that certain groups, including those earning the minimum wage, other lower paid employees and workers that don’t pay tax on a pay-as-you-earn basis, are not eligible.
Amid rising costs across the UK, the letter argues that lower income workers are more in need of the scheme than others and asserts that self-employed workers (who comprise over 13 per cent of the UK workforce) are also being excluded unfairly.
The letter states: “The least well paid in our communities are feeling the effects of soaring inflation to a greater extent than those on higher wages, with the rising cost of commuting only adding to their concern.”
“They often have no option to do their job from home and are forced to commute to a place of work. The cycle to work scheme has the potential to open up equitable access to cycling and provide a cost-effective solution for many workers within this group. The scheme is a proven mechanism at getting more people cycling, and we believe those on the lowest incomes should benefit too.”
The letter argues that expanding the scheme would not only help self-employed and lower paid workers, but would also boost the government’s aims to increase cycling in the UK and prevent travel from becoming even more car-dominated.
