Reeves is putting the brakes on Cycle to Work, and it’s ordinary commuters who’ll skid first

This isn’t a tax perk for the few ‘high earners in the Surrey Hills’, it’s a lifeline for the many who rely on affordable, greener travel and the Chancellor risks punishing the very people it was designed to help - ordinary commuters trying to save money and travel sustainably.

For 25 years this simple, proven policy has helped over two million people afford a bike for their commute - from nurses and shop workers to teachers and civil servants.

It’s one of the few initiatives that genuinely supports workers, businesses and the environment alike – and the data proves it.

New research commissioned by the Cycle to Work Alliance shows that the scheme generates £573 million in annual economic benefits, supporting local retailers, boosting productivity, improving health, and putting money back into people’s pockets.

Last year alone, 199,000 employees bought bikes and accessories worth £219 million, generating £43.8 million in VAT and giving a much-needed boost to Britain’s struggling cycling sector.

Crucially, two-thirds of participants are basic-rate taxpayers, and many rely on the scheme to access a bike that makes their daily commute possible.

For workers travelling long distances, over hilly terrain, or with mobility challenges, that often means an e-bike or an adapted cycle. This is not a “luxury purchase,” but a lifeline.

Since the £1,000 cap was lifted in 2019, the average purchase value has risen modestly, reflecting the growing popularity of e-bikes that have opened cycling to more people than ever before with some even foregoing their family car for a cargo bike to make more sustainable journeys on the school run via their route to work.

A new cap would risk reversing that progress just as the Government’s own Cycling and Walking Investment Strategy aims for cycling to be a safe, easy and accessible option for everyone, and the NHS’s long-term plan places greater emphasis on prevention and helping people lead more active, healthier lives.

The result would be fewer people cycling, more congestion, and greater strain on public services - a textbook example of a short-term fiscal win causing long-term social and economic loss.

Cycling to work isn’t a lifestyle choice for a privileged few, it’s a practical, cost-effective and healthy way for millions to travel. It saves the average commuter £1,262 a year, cuts sickness absence costs by £63 per employee, and reduces the risk of cardiovascular disease by a quarter.

Nearly four in ten users are cycling to work for the first time - clear evidence that the scheme is helping people change how they travel and live.

The Cycle to Work Scheme is working exactly as intended: helping ordinary workers choose healthier, greener journeys while supporting the economy.

Capping it now would mean slamming the brakes on one of Britain’s quiet success stories – just when we need it most.

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Steve Edgell is the Chair of the Cycle to Work Alliance

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