How Sustainable Travel Schemes Can Cut Commuting Costs
27 Oct 2022
Commuting costs are higher than ever before, and businesses must act. Sustainable travel promotions, including salary sacrifice schemes, can save your employees thousands of pounds each year, but many companies aren’t taking advantage of them.
Why salary sacrifice schemes are essential
Inflation is increasing, caused by global instability and competition for resources. This is pushing the cost of commuting higher than ever. Petrol prices are at an all-time high, and rail passengers are being hit with the highest rises in almost a decade.
So, what can employers do?
There are several ways businesses can reduce the burden on employees. Salary sacrifice schemes and loans are tax-efficient and can reduce the impact on wallets. Investing in pool bikes and promoting sustainable transport alternatives, such as Cycle to Work schemes, can help to reduce commuting, congestion, and carbon emissions.
In the end, anything that can help staff cut commuting costs should be considered.
Sustainable travel schemes- Cycle2Work
Cycle2Work is a government initiative which offers the most cost-effective way to get new cycling equipment. Instead of paying for a new bike upfront, staff can spread the cost over 12 or 18 months. As well as purchasing a brand-new bike, they can also use the interest-free loan to pay for essential accessories such as a lock or helmet.
Staff can save up to 43.25% (42% from 6th November 2022) on the retail price of the bike and accessories, with deductions taken from their wages before they are paid to them. Previously the Cycle2Work scheme had an upper limit of £1000. However, following the updated guidance in June 2019, employers now have the flexibility to set whatever limit they choose for their employees. This provides riders with greater choice, including the opportunity to buy an e-bike!
Your organisation will need to sign-up for the Cycle2Work scheme. If you’re interested in Cycle2Work for your employees, contact our Halfords For Business Team www.halfords.com/halfords-for-business/business-contact-us.html.
I'm an employee
Save money and spread the costApply now
I'm an employer
Embrace a happier, healthier workforceFind out more