The Cycle to Work scheme is one of the best ways to get a brand new e-bike for less. Instead of paying the full price up front, you pay for the bike through your salary before tax and National Insurance come off. Here is how it works in 2026 and how to use it with Pedal Go.
How much can I save?
Because your payments come out of your pay before tax and National Insurance, the saving depends on your tax band:
- Basic-rate taxpayers save around 28%
- Higher-rate taxpayers save around 42%
- Additional-rate taxpayers can save a little more
On a £1,500 e-bike, a basic-rate taxpayer would save roughly £420 and a higher-rate taxpayer roughly £630. The cost is usually spread over 12 months, with no interest to pay.
Can I get an e-bike on the scheme?
Yes. Road-legal e-bikes (250W, with assistance cutting out at 15.5mph) qualify, along with safety accessories such as locks, lights and helmets. There has been no official government spending cap since 2019, so bikes over £1,000 are fine, although some employers and scheme providers set their own limits.
How does it work, step by step?
- Check your employer offers it. Ask HR which scheme they use. If they do not offer one yet, many providers make it simple for employers to sign up.
- Choose your bike. Browse our electric bikes and pick the one that suits your journeys. We are happy to help you choose.
- Apply for your voucher or certificate. You apply through your employer's scheme for the value of the bike and any accessories.
- Your employer approves it. Once approved, you receive a certificate or code to use with us.
- We deliver your bike. Your monthly payments then come out of your salary, usually over 12 months.
Which schemes do you work with?
We work with two Cycle to Work schemes: Cycle Solutions and Bike2Work. We cannot accept Cyclescheme vouchers. If your employer uses a different provider, get in touch and we will see what we can do.
What happens at the end?
Technically, your employer hires the bike to you during the scheme. At the end of the hire period you are usually offered the chance to own it, either by paying a small fair market value fee or by extending the agreement and taking ownership later for a nominal amount. The details vary by provider, so check the terms when you sign up.
Who can use the scheme?
- You need to be an employee paid through PAYE. Self-employed people cannot use it.
- Your pay after the salary sacrifice must stay above the National Minimum Wage.
- The scheme is designed to help you get to work, but you can use the bike for leisure rides too.
Is it worth it?
For most employees, yes. You get a better bike than you might otherwise afford, spread the cost with no interest, and save a big chunk thanks to the tax savings. Add the money you save on fuel, parking or train tickets, and an e-bike can pay for itself surprisingly quickly.
Ready to start? Read our Cycle to Work page or call us on 0330 122 4983, Monday to Friday, 8am to 6pm.
Savings are estimates based on income tax and National Insurance rates in 2026 and depend on your circumstances. Check the details with your employer and scheme provider.