Cycle to Work delivers £573m yearly boost to UK economy

Aside from Halfords and other cycle businesses boosting the Treasury’s coffers through increased sales, there’s more good news about how much cycling is contributing to the UK economy.

New research has revealed that the UK’s cycle to work scheme contributes £573 million a year to the UK economy. The Cycle to Work Alliance (C2WA) commissioned analysis confirms C2W is one of the most enriching workplace schemes in operation today, supporting not just healthier, greener commuting but also saving households money, boosting productivity and strengthening aforementioned cycling industry.

Since its inception over 25 years ago, the Cycle to Work Scheme has helped over two million people access a bike. In 2023/24, 199,000 employees used the scheme to purchase £219 million worth of bicycles and accessories – rising to 209,000 employees in 2024/25. Of those employees, 38% were new to commuting by bike – clear evidence the Scheme drives genuine behaviour change.

C2W boosts high street retail and tax revenues: Sales through the scheme generated £43.8 million in VAT in 2023/24, including £8.3 million that would not have occurred without it (said C2WA), whilst providing a substantial boost to a struggling UK cycling sector.

Productivity gains come through C2W too: Newly commuting cyclists save their employers £63 each per year in reduced sickness absence, with an additional £115 each in productivity gains from being at work more consistently. Combined, this contributes £37 million annually to the UK economy.

More pounds in people’s pockets: Employees who switch from cars to bikes save on average £1,262 a year, amounting to £41 million across participants – putting pounds into people’s pockets to spend on household essentials and in their local economies.

Reducing transport emissions: By supporting a healthier, more sustainable workforce and encouraging cleaner modes of transport, the scheme is drastically reducing transport emissions among commuters.

In 2024, the Cycle to Work Alliance celebrated 25 years of the Scheme by launching its manifesto for the Government to unlock access to the Scheme for groups like lower earners and widening access for the self-employed, to ensure equitable access to cycle-commuting.

Steve Edgell, Chair, Cycle to Work Alliance, said: “The Cycle to Work Scheme is proof that smart policy pays back. The benefits are tangible: commuters save over £1,200 a year, employers gaining from healthier and more productive staff, and communities enjoying cleaner air and less congestion. Crucially, it changes behaviour, with almost 40% of participants new to commuting by bike. The case is overwhelming – the Scheme is proving its worth for businesses, communities, and the wider economy and should be expanded so even more people can benefit from its rewards.”

Local Transport Minister, Lilian Greenwood, said: “The Cycle to Work Scheme has been a real success story, helping millions of people choose a healthier, greener way to travel while boosting local economies and supporting jobs.

“This new research shows just how powerful active travel can be, and that’s why this Government is investing £616m over the next four years, to help make walking and cycling a safer and easier way to get around, wherever you live and help grow the economy, so we can deliver our Plan for Change.”

Key Findings

• £573m in annual economic benefits across retail, productivity, health, and household savings.
• £219m in bicycle and accessory sales in 2023/24, generating £43.8m in VAT whilst supporting a struggling UK cycling sector.
• £37m a year in workforce benefits from lower sickness and higher productivity.
• £41m in household savings as employees reduce commuting costs.
• 38% of participants are new commuting cyclists, demonstrating strong evidence of behaviour change.