Are Electric Bikes Included in the Cycle to Work Scheme?

If you’re considering a more sustainable and cost-effective way to commute, you might be wondering whether electric bikes can be claimed through the UK’s Cycle to Work Scheme. The good news is that e-bikes, often referred to as electric bicycles, are increasingly included in this government-backed initiative, allowing employees to save money while investing in a greener mode of transport. 

Understanding the eligibility, benefits, and process of getting an electric bike through the scheme can help you make an informed decision and take full advantage of this tax-efficient benefit. In this guide, we’ll explore how electric bikes fit into the Cycle to Work Scheme, the advantages of choosing an e-bike, and everything you need to know to get started.

 

What Is the Cycle to Work Scheme?

The Cycle to Work Scheme is a government initiative that helps employees buy bikes and e-bikes for commuting while saving on taxes. Your employer fronts the cost, and at the end of the hire period, you can either upgrade or own your bike.

Participants benefit from reduced income tax and national insurance, while employers reclaim the VAT, making it cost-effective for both. Leading providers like Cyclescheme allow employees to save 25–39% on a new e-bike. After selecting your bike, you receive a voucher to redeem at a participating shop, with repayments made through a salary sacrifice scheme deducted from your gross pay.

 

Electric Bikes and the Cycle to Work Scheme

Eligibility Requirements for Electric Bikes

Yes, you can get an electric bike through the Cycle to Work Scheme, but it must meet the UK’s Electrically Assisted Pedal Cycles (EAPC) standards. This means the e-bike should have a motor no larger than 250 watts and provide pedal assistance only up to 15.5 mph (25 km/h). Ensuring your bike meets these standards is essential for it to qualify under the scheme.

Tax Savings and Salary Deduction

The Cycle to Work Scheme allows employees to enjoy a tax-efficient way to purchase an e-bike. The total cost of the bike is usually deducted from your gross salary in installments, which reduces your overall tax and National Insurance contributions. This makes owning an electric bike more affordable while offering a sustainable commuting option.

Adding Accessories to Your Purchase

Many employers allow you to include essential accessories such as helmets, locks, lights, and panniers in your Cycle to Work purchase. This ensures you are fully equipped for your daily commute and can take advantage of the scheme to get all your biking essentials in one go.

Employer and Supplier Requirements

To participate, both your employer and the e-bike supplier must be registered under the Cycle to Work Scheme. Meeting these requirements ensures your purchase is compliant with the scheme rules and that you can fully benefit from the financial and environmental advantages of using an electric bike.

 

Benefits of Using an Electric Bike Through the Scheme

Using an electric bike through the UK Cycle to Work Scheme comes with a range of financial, health, and practical advantages. Here’s a detailed look at how e-bikes can transform your commute:

1. Financial Savings with Tax-Efficient Purchase

One of the biggest benefits of the Cycle to Work Scheme is the ability to acquire an electric bike at a reduced, tax-efficient cost. Through a salary sacrifice arrangement, employees can spread the cost of the e-bike over several months while paying less income tax and National Insurance. This makes high-quality electric bikes far more affordable than purchasing outright, allowing you to invest in a reliable, long-lasting e-bike without breaking the bank.

2. Easier and More Efficient Commuting

Electric bikes make commuting simpler and faster. The motor assistance allows you to cover longer distances or tackle steep hills with minimal effort, cutting down travel time and reducing fatigue. For many commuters, this means leaving the car at home, avoiding traffic congestion, and enjoying a more predictable journey.

3. Health Benefits

While electric bikes provide motor assistance, riders still engage in moderate physical activity. Regular e-bike commuting can improve cardiovascular health, boost energy levels, and enhance overall fitness. Additionally, cycling to work has mental health benefits, including reduced stress, improved focus, and a more positive start to the day.

4. Environmental Impact

Choosing an electric bike over a car significantly reduces your carbon footprint. By participating in the Cycle to Work Scheme, you’re contributing to greener commuting options, lowering air pollution, and promoting sustainable transportation within your community.

5. Practical Advantages

Electric bikes are versatile and convenient. They can be used for commuting, running errands, or weekend leisure rides. Many models include features such as storage racks, lights, and integrated locks, making them a practical alternative to traditional bicycles or vehicles.

By combining financial savings, improved health, reduced environmental impact, and practical commuting benefits, an electric bike through the Cycle to Work Scheme offers a comprehensive solution for modern commuters.

 

How to Get an Electric Bike Through the Cycle to Work Scheme

1. Check Whether Your Employer Participates in the Scheme

Before you can obtain an electric bike through the Cycle to Work Scheme, you must confirm that your employer is registered. Participation is voluntary, and different companies may use different scheme providers. Ask your HR department or check your internal benefits portal to understand which provider your company uses and what spending limits or rules may apply.

2. Choose a Compliant Electric Bike (EAPC)

Next, select an EAPC (electrically-assisted pedal cycle) from an approved partner retailer. Only EAPC-compliant electric bikes qualify for the Cycle to Work Scheme, so choosing a recognised model ensures it meets UK regulations and is eligible for tax savings. Many schemes also allow you to include essential accessories such as helmets, locks, lights, or pannier bags.

3. Submit Your Application Through the Scheme Portal

Once you’ve chosen your electric bike, you’ll need to complete an application. This is typically done through your employer’s Cycle to Work portal or directly via the scheme provider’s website. You’ll enter the details of your chosen e-bike and accessories, then submit the request for approval.

4. Receive Your Voucher or Authorisation Code

After your application is approved, you will receive a voucher or an authorisation code. This voucher confirms your eligibility and allows you to collect your electric bike from the partner retailer. Some providers may also send a purchase order directly to the shop.

5. Collect Your Electric Bike and Accessories

Take your voucher to the chosen retailer and pick up your e-bike and any accessories included in your application. The retailer will validate the voucher and hand over your items, ensuring you’re ready to start commuting right away.

6. Repay Through Monthly Salary Sacrifice

The final step is repayment via monthly salary sacrifice. Instead of paying upfront, the cost of the electric bike is deducted from your gross salary over an agreed period—typically 12 to 24 months. This method lowers your taxable income, reducing the amount of tax and National Insurance you pay and making your e-bike significantly more affordable.

 

Key Considerations Before Choosing an E-Bike

Selecting the right electric bike is essential if you want a smooth, reliable, and enjoyable riding experience—especially if you’re planning to use it for commuting through the Cycle to Work Scheme. Before making a decision, take time to evaluate the following key factors to ensure the e-bike matches your lifestyle, performance expectations, and long-term budget.

Define Your Riding Purpose

Understanding how and where you’ll use your e-bike is the foundation of choosing the right model.

• Daily commuting: prioritise reliability, battery range, and comfort.
  
  

• Hilly routes: look for higher torque motors.
  
  

• Long-distance riding: choose a larger battery capacity.
  
  

• Leisure or weekend rides: a lightweight, versatile model may be best.

Your riding purpose determines the ideal motor, battery, frame design, and components.

Evaluate Motor Type and Battery Capacity

The motor and battery are the heart of any electric bike.

• Motor: mid-drive motors offer better hill climbing and balance, while hub motors are budget-friendly and low maintenance.
  
  

• Battery: consider range, charging time, and watt-hours (Wh). Aim for a battery that comfortably supports your daily mileage with power to spare.

Choosing the right system ensures consistent performance and avoids range anxiety.

Check Fit, Comfort, and Riding Position

An e-bike should feel natural from the moment you start pedalling.

• Ensure the frame size matches your height.
  
  

• Look for adjustable handlebars and ergonomic saddles.
  
  

• Consider suspension forks or seat posts if you ride over rough terrain.

Good fit and comfort make everyday riding more enjoyable and support better posture.

Understand E-Bike Classes and Legal Requirements

Different regions classify e-bikes by speed and assistance levels.

• Know whether you need a pedal-assist only model or one with a throttle.
  
  

• Check the maximum assisted speed allowed in your area.
  
  

• Ensure the e-bike qualifies for schemes like the Cycle to Work Scheme.

Staying compliant avoids fines, restrictions, and insurance issues.

Assess Component Quality and Durability

High-quality components improve performance and reduce maintenance costs.

• Brakes: hydraulic disc brakes offer the best stopping power.
  
  

• Drivetrain: look for reputable brands like Shimano or SRAM.
  
  

• Tyres: puncture-resistant tyres are ideal for commuting.

Good components ensure long-term safety and reliability.

Set a Realistic Budget

E-bikes range from budget-friendly to premium.

• Balance cost with the features you need.
  
  

• Avoid extremely low-priced models that may lack durability.
  
  

• Consider long-term savings, especially if using the Cycle to Work Scheme.

A practical budget ensures you get maximum value without overspending.

Consider Warranty and After-Sales Support

A strong warranty and local support network are crucial for peace of mind.

• Look for battery warranties (typically 1–3 years).
  
  

• Ensure the retailer offers reliable servicing and spare parts.
  
  

• Choose reputable brands with proven customer support.

Good aftercare protects your investment and keeps your e-bike running smoothly.

 

Conclusion

So, are electric bikes included in the Cycle to Work Scheme? Absolutely. E-bikes are fully eligible, allowing employees to save money, spread costs, and enjoy a greener, more convenient commute. With tax benefits, improved comfort, and long-term value, choosing an electric bike through the Cycle to Work Scheme is a smart and sustainable upgrade for everyday travel.

 

FAQs

Can you get an electric bike on a cycle to work scheme?

Yes. Electric bikes are fully eligible for the Cycle to Work Scheme, allowing employees to save on costs through tax benefits and salary sacrifice.

What are the exclusions for cycle to work schemes?

The scheme typically excludes accessories not essential for commuting, non-compliant e-bikes, and items purchased without employer approval. Some providers may also set price limits.

Can you get a government grant for an electric bike?

Currently, the UK does not offer a specific government grant for electric bikes, but employees can still save significantly through the Cycle to Work Scheme.

Is an electric bike classed as a vehicle?

Currently, the UK does not offer a specific government grant for electric bikes, but employees can still save significantly through the Cycle to Work Scheme.