Tuesday 16 October 2018
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Do you fancy taking up cycling?

Fancy taking up cycling

Cycle2Work Scheme

Cycle2Work is a government scheme which lets you save money on a bike and safety equipment by paying monthly through a salary sacrifice. Our Cycle2Work scheme is run by Halfords.

How does it work?

The council buys the bike and equipment, then leases it to you through an interest-free salary sacrifice scheme. In short, this means you'll pay less for your bike and you will be able to pay in instalments.

Salary sacrifice means the cost of a new bike and safety equipment is deducted from your salary as a non-cash benefit, so you save on tax and national insurance.  At the end of the 12 month period you get to keep the cycle and any accessories that you buy.

How much could I save?

Here are a couple of examples of how much you could save if you are a basic rate tax payer.  
Ellie purchased a mountain bike using the Cycle2Work scheme. She also decided to add a helmet, high-vis jacket and ultra-bright lights.   

  • The total cost was £950
  • All staff receive an automatic 5% discount - this means the total gross salary sacrifice would be  £902.50.  This works out at £75.21 per month
  • Because the payments are taken before deductions, you pay less tax and national insurance, this means Ellie's net salary only reduced by 51.14 per month
  • At the end of the 12 months Ellie had only paid a total of £613.70, meaning she had saved a total of £336.30 on the cost of her new cycle and equipment. 

Andrew purchased a cycle, a helmet, USB rechargeable lights and a secure D lock for his commute across town.

  • The total cost was £520
  • All staff receive an automatic 5% discount - this means the total gross salary sacrifice would be £494.00.  This works out at £41.17 per month
  • Because the payments are taken before deductions, you pay less tax and national insurance, this means Andrew's net salary only reduced by £27.99 per month
  • At the end of the 12 months Andrew had only paid a total of £335.92, meaning he had saved a total of £184.08 on the cost of his new cycle and equipment. 

What can I buy?

Adult cycles including electric cycles and safety equipment to go with your bike. 
Permitted equipment includes: 

  • cycle helmets conforming to European Standard EN 1078
  • bells
  • bulb horns
  • lights including dynamo packs
  • mirrors and mudguards
  • cycle clips and dress guards
  • panniers, luggage carriers and straps 
  • locks and chains that safely secure your cycle
  • pumps and puncture repair kits, tool kits and tyre sealant to allow for minor repairs
  • reflective clothing and reflectors
  • child seats.

Accessories that are not available include forks, frames, sat navs, cycle computers, Gopro cameras, turbo trainers and cycle racks. Items such as frames and forks are cycle components not safety equipment: safety equipment is something you add to the cycle or the cyclist to make cycling safer.

How do I get started? 

To apply for Cycle2Work you must have a contract with the council that is longer than 12 months, this is because the payments are taken over a 12 month period.


  1. The first thing you need to do is select your cycle and any safety equipment you wish to purchase using the scheme.  The value must be between £100 and £1000.

  2. Once you have a quote for the value of your chosen cycle and equipment you can apply for the scheme.

  3. If your application is approved you will receive a LoC.  LoC stands for Letter of Collection,  this is what you exchange for your chosen bike.

Where can I buy my bike and accessories?

I've chosen my bike and accessories - how do I apply?

  • It's quick and easy to sign up - Visit the cycle2work website via the button below and click the employee sign up link. Use our employer code ERYCC2W.  You will need to enter a valid work or personal email address.
  • You will then receive an email with a link to complete your application.  The form asks for further personal information.  You will also need your payroll number and the value of your cycle and accessories.
  • Typically you will receive your LoC within 7 days, though we will contact you if it is likely to take longer.

It is important that enter the correct amount when you apply as you cannot 'top up' or add to your LoC using your own funds. This is because you and the council would jointly own the bike causing issues at the end of the hire period. 

Now you've decided a bike is for you, visit:

cycle2work

The council’s employer code is: ERYCC2W

Alternatively, you can contact Halfords Cycle2Work Support line on 0345 504 6444.

I've received my LoC - What do I do now?

Redeem your voucher in the following ways:

  • Online by entering your LoC Number during the checkout process

  • In-store at Halfords or your chosen independent retailer.

And finally...

  • Once you have exchanged the LoC for your cycle and accessories the cost will be deducted from your salary over a 12 month period

  • At the end of the 12 months you get to keep the cycle and accessories.
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