The 2025 UK Budget: Cycle to Work and Salary Sacrifice schemes remain largely untouched

Our key insights from the 2025 Budget

The Cycle to Work scheme remains untouched, despite wide speculation about reforms to salary sacrifice.
Commuting by bike and e-bike stays affordable and accessible, with no changes to tax-efficient savings.
Employers gain long-term certainty, supporting continued investment in sustainable travel benefits.

As the dust settles on the Budget announcement from Chancellor Rachel Reeves, there’s one standout takeaway for active travel supporters:

The Cycle to Work scheme has been left completely untouched

After weeks of speculation – with rumours of caps, cuts or sweeping reforms – the government’s decision to keep the current framework intact sends a clear message: salary sacrifice works – and the Cycle to Work scheme continues to play a vital tool in helping employees choose low-cost, low-carbon ways to commute.

By keeping the Cycle to Work scheme exactly as it is, the government has reaffirmed that salary sacrifice delivers meaningful value:

It keeps cycling and e-cycling financially accessible
It supports healthier commuting habits
It aligns with long-term transport and sustainability goals for businesses and the UK as a whole

Stability for employers and employees

We understand how important stability is for HR teams and benefits providers.

And the outcome of the 2025 Budget gives employers the certainty they need to keep offering and promoting Cycle to Work confidently.

All while employees continue to benefit from savings of up to 47%, removing one of the biggest barriers to adopting active travel – affordability.

What this means for the future of active travel

We believe this decision by Councillor Reeves helps secure cycling’s role as a key part of the UK’s transport system. Keeping salary sacrifice untouched supports:

More people taking up cycling for the first time
Growth in flexible bike-share and e-bike options
Employers who want to champion sustainable commuting
Continued momentum toward a lower-carbon transport network and Net Zero goals

Our view

Here at CycleSaver, we have always championed the importance of Cycle to Work in making everyday cycling more affordable.

This year’s Budget confirms that the government sees the same value.

Dino Bertolis, Founder and CEO at CycleSaver said;

“Keeping the Cycle to Work scheme untouched is a clear vote of confidence from the Government in salary sacrifice models and their role in making commuting by bicycle and e-bike more affordable and accessible than ever. It gives employers long-term certainty and keeps cycling within reach for employees at a time when cost pressures are already high.

This decision supports continued growth in active travel – not just bike ownership, but flexible options like city bike hire schemes through providers such as Lime, Voi and Forest – and signals that sustainable, low-carbon commuting remains a priority for the UK Government.”

We remain committed to helping make cycling more accessible than ever through our flexible bike-share subscriptions across the UK.

How to get started with CycleSaver’s salary-sacrifice scheme

Getting started with CycleSaver is simple for both employers and employees.

We’ve designed the process to be quick, 100% HMRC-compliant and easy to roll out, whether you’re a small business or large corporate.

For employers:

Sign up to CycleSaver via your benefits platform or directly through our website.
Share your unique application link with your employees so they can join the scheme instantly.
Manage applications, invoices and reports in one place with minimal admin via our employer portal.

For employees:

Choose your subscription and submit your application.
Wait for your application to be approved by your HR team.
Start saving up to 47% through salary sacrifice while enjoying a cheaper, greener, faster journey to work.

We’ve built CycleSaver to remove the barriers – no upfront costs, no long forms, no confusion. Just a tax-efficient way to make everyday cycling more affordable and accessible than ever.

💡 Read more: The Ultimate Guide to Bike Share in London

Ready to get started?

Visit our website, and test out our travel calculator, to get an idea of the time, money and CO2 you could save by making the switch to bike share for your commute.