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Cycle to Work scheme might save £100 a month

Cycle to Work scheme might save £100 a month 

As employers grapple to help employees in the course of the present value of residing disaster, they could possibly be ignoring a key worker profit that may deliver substantial value financial savings for employees.

New analysis from engagement platform, Sodexo Have interaction reveals that at present solely 11% of UK workers have signed as much as the federal government’s Cycle to Work scheme. That’s regardless of it being one of the crucial cost-efficient types of commute.

The analysis, timed to coincide with Nationwide Bike Week (5th – 12th June 2023) reveals that, whereas 64% of UK workers at present have entry to a Cycle to Work scheme, solely 25% of them have made use of the low cost.

Within the face of hovering commute prices, and a rise in rail strike motion, Sodexo is recommending enterprise house owners signal as much as the Cycle to Work scheme to advertise a less expensive, environmentally-friendly commute methodology to their workers.

Staff might save £1,199 a yr on journey prices

Following a 5.9% enhance in prepare commuting prices earlier this yr, Sodexo Have interaction surveyed 1,000 UK employees to calculate the common value of travelling into work in 2023.

In collaboration with Censuswide, Sodexo found that respondents are spending a median of £24.97 on commuting bills every week. Over the course of a yr, this accounts to a staggering £1,199 per particular person.

Notably, for these in London, the figures skyrocket to £1,577, making it the costliest commute within the UK.

Commute prices have turn out to be a significant concern for at present’s workers – notably for youthful employees, who are typically much less financially safe.

In a current Startups survey, exploring attitudes in the direction of a four-day week, we found that 38% of workers would select to work one much less day per week to cut back their commuting bills and time.

Graham James, Director at Sodexo Have interaction, feedback: “Clearly simply having a Cycle to Work scheme would not assure take up, as our analysis reveals.

“It is essential that employers are speaking these advantages and making it as simple as doable for workers to utilize them with a purpose to achieve these all-important financial savings.”

Scheme has financial savings for workers and employers

For the enterprise proprietor, investing in a sexy advantages and perks package deal for workers brings a number of organisational benefits. Crucially, it will probably go an extended method to bettering employees morale and reducing turnover price.

In at present’s scarce expertise market, firms should be pulling out all of the stops to draw and retain their current workforce.

On account of the value of residing disaster, many employees are feeling demotivated following a fall in actual wages. The Cycle to Work scheme is an instance of a advantages package deal that’s designed to help monetary wellbeing and schooling. Its introduction might assist workers to funds and stretch their wages additional with out the necessity for a pay rise.

Organisations that already provide a Cycle to Work scheme, however undergo from few sign-ups, must also reexamine their method to the coverage to see how they could encourage better worker engagement.

A few of the challenges shall be easy to repair; for instance, academic limitations. When requested why they didn’t wish to cycle to work, 14% of respondents stated their office didn’t have the services to permit them to bathe after they arrived.

James provides: “The explanations given as to why individuals aren’t biking to work reveals a transparent have to empower workers to assist them realise that biking to work is a viable choice to offset the price of commuting.

“This can require a holistic method from HR and enterprise leaders, encouraging workers to take up biking and make full use of the Cycle to Work profit.”

How does the Cycle to Work scheme work?

With a Cycle to Work scheme, the employer will buy a motorbike, and equipment, for the employees member to journey to work. The person can then ‘rent’ the bike by wage sacrifice, spreading the fee over a compensation interval of 12-18 months.

Nonetheless, the worker gained’t be paying full worth for the bike. Staff can save as much as 42% in tax and NI contributions. Meaning the worth tag of a model new bike, which generally averages round £600, can be slashed to only £348.

The enterprise can even obtain a reduction. For each employees member who goes by the scheme, the employer can keep away from paying round 13.80% in Nationwide Insurance coverage Contributions (NICs). On common, bosses will save £138 for each £1,000 spent.

Along with these advantages, biking to work can increase an worker’s psychological and bodily wellbeing, in addition to being a a lot greener choice than different modes of transport.

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