Bike to college scheme to be introduced in the budget

The minister or transport wants to roll out financial supports, similar to the successful cycle to work scheme, for those attending third-level education. Picture: Larry Cummins

A bike to college scheme is to be introduced for students as part of the upcoming budget, the minister for transport has promised.

Darragh O'Brien wants to roll out financial supports, similar to the successful cycle to work scheme, for those attending third-level education, which he hopes will save students money and help to meet carbon reduction targets.

"I have asked officials to advance that already, I think it's a really good idea," Mr O'Brien told the Irish Examiner.

"You'll see on the active travel we made significant improvements, particularly around our cities and indeed in our towns, and I think the bike to work scheme has been an incredible success. It's something that we should look at for third-level students."

Under the cycle to work scheme, introduced in 2009, employers can purchase a new bike and accessories for staff. 

Workers repay the cost via salary deductions that spread out repayments. 

Under the cycle to work scheme, introduced in 2009, employers can purchase a new bike and accessories for staff. Workers repay the cost via salary deductions that spread out repayments. Picture: Stock

They are not liable for tax, PRSI or universal social charge on this expense, meaning those on the highest tax rate can save almost half of the cost.

However, given the fact that most students either do not work or only earn enough to be on the lower rate of tax, Mr O'Brien is now considering a grant system.

"It could be a tax credit, it could be a grant, they are the options that we look at. 

"We're going to flesh out those options, and they're the type of things that I have asked officials to come back to me with options on," said Mr O'Brien.

Minister for transport Darragh O'Brien said the options are a tax credit or a grant. Picture: Sasko Lazarov

He added: "All of these things help us in relation to moving and working towards our 2030 [carbon reduction] targets, and indeed onwards to our 2050 targets, getting more people out of the car, using public transport, using bikes."

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Mr O'Brien has also indicated that he wants to make public transport free for children beyond the age of eight. 

Budget 2025 committed to rolling out free travel to 5- to 8-year-olds, and the minister suggested that this could now be extended further.

Turning to his former role in the department of housing, Mr O'Brien said failing to meet the 40,000 home construction target, which had been flagged for 2024, was "disappointing".

"The figures, they were certainly lower than we would have thought," he said.

But he said a "pivot" towards commencements in response to the development levy waiver slowed down the completion of houses last year.

Mr O'Brien also agreed that a change of policy is required in some areas to speed up delivery of housing.

"I would have been, if I remained in housing, certainly looking at what policies are working, the speed in which they're working, frankly, which ones are not working and to seek to change that, because we have a new mandate, we have a new Government."