Is the Cycle to Work Scheme working?
Published: 5 November 2009 By Chris RayFollow me on Twitter 3 Comments
I am a big fan of the cycle to work scheme, which is one of the reasons why we are publishing so many articles about it on Moneyhighstreet.com.
An article about the cycle to work scheme being unpopular on PersonnelToday.com has left me wondering how successful it actually is.
Apparently only 3% of the working population cycle to work and only a small number of employers offer the scheme.
There are two stumbling blocks, apparently – the complexities of administering the scheme for employers and the lack of showering and changing facilities for employees when they arrive sweaty and out of breath at their work place.
Some major employers, such as O2, say that the scheme is not as popular as other flexible benefits such as childcare vouchers and purchasing additional holidays.
Although I can see that cycling to work will only appeal to a small number of people, it seems that employers are not doing enough to promote the scheme to their employees and encourage a better take up.
Yes, it is costly to install showers in the work place and I can see this being a big problem for employers who rent or own older buildings, but many newer office facilities have showers installed already.
So it seems to be the employers, not those who will actually be getting on their bikes, who are most reluctant to embrace the scheme. Here is one example, that actually shocked me.
A friend works in a large NHS hospital and has approached his HR department as he would like to join the cycle to work scheme. He was told that the hospital scheme is closing down this month!
So a scheme to help promote better health, help the environment, save on valuable hospital parking and help make happier employees is being stopped by a major NHS hospital!
It is no wonder that the cycle to work scheme is not proving as successful as it could be when government institutions are not supporting it.
Hi
It was interesting to read your comments regarding Cycle To Work and O2 in particular.
I have learned from an acquaintance at O2 that the Cycle To Work scheme isn’t particularly promoted or easy to join within O2. Firstly there is only a 3 week window within November when a the scheme can be started (A very strange time offer the scheme – before the winter months). After applying in November the cheque is not released till January.
Furthermore they charge an admin fee of around 11% on the cost of a bike. Added to this they will not claim back the VAT for the bike either.
So it ends up the savings are pretty small after accounting for all of this.
It seems to me that O2 are actively putting people off the scheme due to the hassle of administration. Perhaps this is the reason there is a low take up in the Bike To Work scheme within O2 and other companies.
Look forward to your reply.
Bob
Hi Bob
Thanks for your message.
Whilst I can’t comment about the O2 scheme directly, it does seem surprisingly restrictive. The NHS based scheme I heard about also had a mid November cut off date – which again seems restrictive, although there aren’t the admin fees that you mention apply to the O2 scheme.
I think it depends on the employer and the scheme that they use as to how easy it is to actually join. It is a shame that employers aren’t embracing the cycle to work scheme more fully. Maybe the fault lies with employees too, because if they were more vocal about having the scheme within their firms then more employers might take notice, particularly with parking spaces being so limited at most offices.
The biggest problem is that whilst cycling is becoming more popular, only a small percentage of people are prepared to don the cycling gear and venture out on a cold and dark November morning. I guess the cycle to work scheme is only ever going to have limited appeal.
Chris
for some reason the scheme is closed until further notice in the Darlington memorial hospital, but up and running in a kent NHS hospital !??!!….strange !!!