The UK government has announced that the cap on Cycle to Work bikes under the Cycle Scheme of £1000 has been dropped.
Good news for anyone looking to upgrade their commuter whip from their gravel/CX/winter bike to say, something along the lines of an e-bike as the government announces it has dropped the upper limit for Cycle Scheme bikes.
Previously, the maximum value cap of a bike for an employer without a Consumer Credit Authorisation was £1,000. The government have now dropped this cap, effectively waving the requirement for the Financial Conduct Authority to approve the CCA.
This might not be all good news though, certainly for bike manufacturers, who have been speccing bikes that might catch the eye of the cycle commuter to land just under the one thousand pound mark.
How does Cycle Scheme work?
Cycle Scheme is a tax-free, hire purchase agreement between an employer and employee, whereby the employee can save between 25 and 39% on the cost of a new bike and kit.
You make a small salary sacrifice monthly and save a heap of cash on a brand new bike, with the option of owning the bike at the end of the hire period, or opting to pay a higher amount from the get-go if you want to own it from the start.
With the upper limit on bike cost without the Consumer Credit Agreement from the FCA being dropped, you now have a much wider spectrum of bikes to choose from from a much wider price bracket. Obviously the monthly salary sacrifice will be higher, but you will have a much nicer bike as a result.