Secret Cyclist: The original Bike to Work scheme is due a European-style overhaul

"Given the urgent need for climate action, the question should perhaps rather be how can we support more people to cycle instead of drive?"

Thu, 27 Jul, 2023 - 20:00

The Secret Cyclist

It’s fourteen years since the ‘Bike to Work’ scheme was introduced here in Ireland.

The premise of the scheme was simple: make bikes more affordable so more people would cycle to work.

This idea was based on the assumption that the cost of a bicycle was the main, or at least one of the main, reasons stopping people from cycling to work.

It shouldn’t have come as a surprise to anyone that other factors hinder the take up of transport cycling in Ireland.

Survey after survey tends to confirm that safety concerns are the primary reason why more people don’t cycle to work.

The ‘law of unintended consequences’ came to dominate the ‘Bike to Work’ scheme as thousands of people purchased new bicycles with the help of a tax credit and then went on to use these bikes for recreation and not commuter cycling.

Was it any wonder that the early 2010s were a boon period for recreational cycling in Ireland?

Cycling Ireland membership levels tripled between 2009 and 2013 and new sportive rides popped up all over the country.

From a cost-benefit analysis point of view, the bike-to-work scheme is still on a solid footing, regardless of whether people use the bikes for recreation or commuting.

A study of the UK’s cycle-to-work scheme found that if just 5% of participants cycle for 30 mins a day, the societal benefits would cover double the cost of the scheme to the Exchequer.

That said, the question still remains, how can we support more people to start biking to work?

Given the urgent need for climate action, the question should perhaps rather be how can we support more people to cycle instead of drive?

The starting place for any such discussion should be to address safety concerns so people see routes as attractive and enjoyable to cycle.

The original bike-to-work scheme put the cart in front of the horse.

Sustained investment in active travel projects in conjunction with traffic calming and limiting car access is the horse.

Financial support or incentives to bike a buy is the cart. To make matters worse, many would argue that the bike-to-work scheme is not the best cart.

It’s an exclusionary scheme, closed to students, retirees, self-employed persons, and anyone else who isn’t a PAYE worker.

The more you earn, the more you save, which means people on lower incomes have to pay more for a bike.

Even if you are a PAYE worker, your employer is under no obligation to participate.

One large Irish supermarket chain famously doesn’t offer the scheme to its staff.

Frustratingly, other employers limit access to the scheme to certain times of the year or do not allocate sufficient human resources to process applications promptly.

The bike-to-work scheme can be contrasted to the SEAI Electric car grant, where €5,000 was taken off the cost of a new electric vehicle for several years with far less red tape.

Disappointingly, the Government’s answer to these problems was to raise the ceiling on the amount of money you can seek relief on.

In 2020, the limits were increased from €1,000 to €1,250 for standard bikes, and €1,500 for electric bikes.

In 2022, a new cap of €3,000 was introduced for cargo bikes.

Meanwhile, a Spending Review in 2021 of the Cycle to Work scheme published by the Irish Government Economic and Evaluation Service highlighted some of the concerns listed above including the restrictions on eligibility, the inequality of the scheme, and a lack of oversight of the scheme.

Looking at our neighbours in Europe, it’s certainly fair to say that more targeted financial measures could be introduced to increase cycling levels in Ireland.

Access to funding should not be a barrier to someone wanting to cycle.

Crédit Mutuel, a major bank in France, offers 0% interest rates loans up to €6,000 euro for 48 months to purchase as many as 4 new or used bikes.

People should also be encouraged to swap a polluting vehicle for a bike.

The French Government offers subsidies for exactly this.

If you are in a low-income household and a ‘low emission zone’, this subsidy can be as high as €4,000.

Other countries in Europe permit employees to claim tax relief for cycling to work.

In the Netherlands this is 21 cents per kilometre and in Belgium it is 27 cents. Spain has plans to introduce similar incentives.

These incentives can put up to €1,000 back into the pockets of people choosing one of the least polluting and healthiest ways to travel.

If any of these plans were to come to fruition in Ireland, they would need to be preceded by a long and loud advertising campaign which sets out the numerous economic, societal, and environmental benefits that cycling brings.

A few times a year, someone in a car or van takes the time to shout something in my direction regarding ‘road tax’, a misnomer for motor tax.

I can only imagine their delight to learn I might be paid to cycle in the near future.