Cycle to Work: 'Fairer pricing' for customers as Cyclescheme enforces new rules for retailers

Popular Cycle to Work scheme, Cyclescheme, has updated its partner agreement to prevent retailers from applying additional charges, in a bid to "ensure fairer pricing” for its customers.

Coming into effect from December 22, 2023, any retailers who commit to the new policy will agree to apply no additional charges, while also ensuring that any products are available as advertised when a voucher is redeemed.

“We are committed to getting more UK employees cycling to work, by removing the financial and accessibility barriers associated with getting a new bike,” Adrian Warren, senior product director at BHN Extras, said in a press release.

“This update to our retailer agreement ensures that Cyclescheme customers are being met with consistent and transparent pricing, reducing confusion for retailers and participants, and aligning with regulatory guidance.

"With a shared goal between retailers and Cyclescheme to get more people cycling, these changes will create a more positive and fair experience for all participants.”

Along with the benefits to customers, the changes also reflect the latest FCA regulatory requirements and compliance policies. The revised retailer partner agreement can be viewed on the Cyclescheme website, here.

• Read more: Everything you need to know about the Cycle to Work scheme

Cyclescheme, which is a part of BHN Extras, is one of the most popular Cycle to Work Schemes in the UK. These schemes are part of a UK government initiative that provides a cost-effective way to purchase a bicycle and accessories, with the aim of getting more people cycling.

As the employer makes the purchase, the employee faces no up-front cost and pays for the bike through regular salary deductions, usually of 12 months, although longer agreements have become more common.

These deductions are paid through pre-tax income, meaning that employees can make big savings, which for Cyclescheme are between 25% and 39%.

The good news for customers is that the updates to Cyclescheme’s policy means that employees shouldn’t face any additional charges, like commission or surcharges, when purchasing from retailers.