Ride to work scheme - Just Scrap it

[briansnail]

My campaign is to scrap the Ride to Work scheme. Permanently.

I woke up early last month and cycled into work. I stuck up 6 posters on the revised Ride to work scheme. Then I waited for the thumping of hooves anticipating a mad rush of Cyclists scrambling for forms. I held my ear to the ground.Nothing strangely silent. I am still waiting.

Melanie is a member of our cycling circle. She is a supremely fast cyclist. More importantly she is particularly astute with figures.She's is a paid up member of the Chartered Institute of Management Accountants. In short she knows what she is talking about. Her view of the scheme is scathing. A good system depends on clarity and KISS(Keep it simple).The present scheme does neither. The savings are overstated perhaps 10-20% at best.Bear in mind the salary sacrifice - no free lunch here. Unless of course you are a higher paid tax payer then maybe 10-30%.

In 2008 the world fell silent. There was a real fear cash machines would stop working. Banks were wobbling like bike wheels with missing wheel nuts. Industry was in despair. One radical solution was introduction of a car scrappage scheme. The problem is this. Its great if your making Audi's or Volvo's. However one viewpoint is hard earned tax payers revenue was squandered propping up foreign car companies.

One possible solution is for us to press gang the campaigning Politicians into our living rooms. Then demand something useful. A universal scrappage scheme for UK cyclists who ride to work worth 30%.Encourage the UK cycle industry .You ride a Brompton get 40% gifted by the government.Both Assembled and components UK sourced 60%. Crunch question how to pay for it. Answer it pays for itself. You can't quantify benefits purely on monetary value. Spend to save.

Cars weigh up to a tonne. They also damage roads. This means expensive maintenance. Fuel has to be imported. Definite balance of payments issue here. Cars emit particulates. The NHS is almost on its knee's. It can do without additional costs of catering for children and the elderly suffering from car exhaust fumes.

A new scrappage scheme is something to think about. Tell the Politicians. They will give you everything you ask for. For now.

[fastpedaller]

Once the masses get free internet they'll be even more glued to the sofa!

[Bonefishblues]

Tell the Politicians. They will give you everything you ask for. For now.

I've got some magic beans on special this month. Any interest?

[gazza_d]

The cycle 2 work scheme is flawed, mainly as it's not open to all, just those working for a company interested enough to have such a scheme

A better solution would be a national Govt backed scheme where anyone could get a 12 or 24 month interest free loan to buy a cycle with a Govt contribution.
With perhaps bigger discounts if on benefits.
Scrappage schemes shouldn't be for newer cars, but for cycling or even electric at a pinch as sadly we are in a position where a percentage of people do need to drive a car to/for work

[atlas_shrugged]

In Belgium you get Euro 0.23 for every km cycled to/from work. This is tax free.

[fullupandslowingdown]

Oh come on people, how long have we heard all the bull from politicians? They say what they think will get votes, and if at all, implement policies that have the loudest soundbite but the smallest cost to their budgets. The original scrappage scheme was ill thought out, there were plenty of satisfactory cars with life left in them that were crushed, these could have been sold onto people who couldn't afford any new car full stop but were driving really polluting cars: a sort of filtering down of resources for the overall greatest benefit. It was just a scheme to line the manufacturers pockets. Just like the bank bail out. We tax payers pay tax one way or another way. A cycle scrappage scheme would be a good sound bite for greenwashing parties, but again, if the old bikes got crushed, that would be a criminal waste of resources. As a very minimum, give them to developing countries in Africa for all sorts of schemes in place already like health care professionals using bikes in rural areas, school children traveling to schools, workers commuting schemes. We waste too much in the western world. It's going to bite we on the backside soon, very soon.

[Darkman]

A new scrappage scheme is something to think about. Tell the Politicians. They will give you everything you ask for. For now.

Correction: They will PROMISE you everything you ask for. For now.

Oh, and that'll be "by the end of this parliament".

Then when the time comes; "oh, no sorry you can't have that because reasons. But we'll give you a new load of bullpoop promises if you vote for us again".

Repeat ad nauseam. Are we fools?

[Bonefishblues]

On balance, yes

[rmurphy195]

Bear in mind the salary sacrifice - no free lunch here. Unless of course you are a higher paid tax payer then maybe 10-30%.

Not sure how you work this out -

When I utilised the Salary Sacrifice scheme with my employer, this meant the, effectively, you reduced your salary by a given amount to pay for something, and this was done before tax and NI were deducted.

So this meant that you could save, at the time (I "retired" about 10 years ago), up to 30% (20% of tax for a normal - not higher rate - taxpayer and 10% on NI contributions). At the time this meant that, for example, a £1000 sacrifice saved £300 in tax and NI contributions, i.e the company paid for something on your behalf, took £1000 off you but in practice you were £1300 better off than if you paid for the £1000 item yourself.

At present, NI is 12% so this would be £320 saving.

At present, to get no saving at all you would have to be earning below apprx. £8400 (the lower threshold for NI), to get a 12% saving you would have to be earning between c£8400 and £12500 (the income tax allowance), for the full saving you would be earning about £13500. All this is of course unless your personal circumstances give you different allowances.

The only complication is that you would likely not be able to make a salary sacrifice that would bring you below the national minimum wage.

As for the ride to work scheme (now "Cyclescheme") - several of my colleagues used it, and it was very simple for them to set up. I didn't, a 60-mile round trip commute by bike didn't appeal!

A side note on salary sacrifice and pensions - if you are considering contributing to an AVC sceme, do it via Salary Sacrifice if you can because of the extra savings.

[irc]

It's very simple. If they want to encourage cycling make it zero rated for vat.

[reohn2]

It's very simple. If they want to encourage cycling make it zero rated for vat.

And provide 0% interest loans to buy them

[PH]

Bear in mind the salary sacrifice - no free lunch here. Unless of course you are a higher paid tax payer then maybe 10-30%.

Not sure how you work this out -

Can't answer for briansnail, but you have to take into account that unless the voucher is supplied direct from you employer it isn't worth the face value to the retailer. The various providers that administer most of these schemes take anywhere from 10 - 15%, so what you might think of as a £1,000 purchase the retailer will consider at best a £900 sale. I can't see any reason why they wouldn't be just a willing to sell for the same value in cash. Indeed I have various 10% discount codes from several of the big retailers that can't be used in conjunction with a voucher.

[visionset]

You can get almost any decent bike at ~40% off end of season. Try doing that in conjunction with C2W - Utterly pointless waste of time.
The idea of scrapping bikes is abhorrent. We do not need any additions to our throw away culture.

[mattheus]

The idea of scrapping bikes is abhorrent. We do not need any additions to our throw away culture.

I may have skim-read this, but I assumed it was a payment for scrapping a car! possibly letting you spend the dosh on a new bike?

[TrevA]

You can get almost any decent bike at ~40% off end of season. Try doing that in conjunction with C2W - Utterly pointless waste of time
.

Only in certain, less popular sizes. Try getting a 56 or 58cm bike in an end of season sale, there won’t be any left.