C2W new Guidlines

[PH]

Surprised we haven't discussed this, apologies if we have and I've missed it.
Government this week announced new guidelines for the Cycle to Work schemes, the main point is that £1,000 limit doesn't apply if it's run by FCA authorised third party providers. I don't know how many of the current providers are authorised, I'd expect any that aren't will be soon. I'm also not sure if this is new regulation or just a clarification, I'd understood employers themselves were bound by the £1,000 limit unless they were authorised, it is after all them paying the advance. The announcement concentrates on the guidelines enabling more E-bikes to be included, but it isn't restricted to them.
https://www.gov.uk/government/news/gove ... ork-scheme

[chocjohn9]

This is from road.cc

It's now official that Cycle to Work schemes in the UK will allow you to fill your boots with bikes and gear worth over £1,000, following the release of new guidance from the Department of Transport...

The gist of it was that the updated guidance will allow for the purchase of e-bikes and modified bikes for the less able to join the scheme if their employer offers it: "Push to increase use of e-bikes to help tackle congestion, speed up commutes and cut travel costs coincides with the launch of Bike Week", so it says... although if you read between the lines, this does mean (again subject to whether your employer is signed up to a Cycle to Work scheme), that now any bike is fair game.

Cycle to Work schemes operate on a salary sacrifice basis, with employees 'loaning' a bike off their employer tax-free, initially for a year. You can then extend the loan and eventually buy it at a nominal price calculated factoring in the bike's depreciated value over time - after five years, this will be almost nothing as HMRC consider the bike to be of 'negligible' value.

Michael Ellis, the government's new Cycling Minister, has said that there never officially was a £1,000 limit for larger employers who are registered with the Financial Conduct Authority - although many would argue that information wasn't exactly public knowledge. Now though, the refreshed guidance will allow non FCA-approved employers to offer more expensive bikes so long as the provider is: "As e-bikes are more often than not over £1,000, the refreshed Cycle to Work will make it easier for employers to offer e-bikes on the scheme by making it clear that FCA-authorised providers are able to run the scheme on their behalf."
Cycle to Work Alliance Chairman Adrian Warren said of the updates: “We are delighted the new Cycle to Work Scheme guidance has today been published.

“Cycling to work has extraordinary benefits for the environment, our health and wellbeing, and employer-employee relations, and today’s publication represents a significant step forward in getting more people physically active as part of the government’s ambitions to double cycling activity by 2025."

Cycling UK's Matt Mallinder praised the decision, but wants the scheme extending to those out of work such as the elderly and the disabled: “Electric cycles are great way to boost cycle use, reducing congestion, pollution and carbon emissions, allowing people to make journeys that are a bit longer or hillier than they’d otherwise want to cycle.

"Cycling UK hopes the Government’s support will also encourage people who are older, frailer or a bit overweight to discover that they too can enjoy the benefits of cycling for their health, wealth and well-being, and that similar support can soon be offered for those who are not in work too.”

What's on your shopping list?

[Cyril Haearn]

May I use it to buy several cycles plus spare tyres, chains etc to see me out?

[TrevA]

Sadly, I retired from work 2 months ago, so too late for me.

Any chance of a “Cycle to the Cafe” scheme for us retirees? We could even call it CTC! Or Ride to the Cafe (RTTC).

[gaz]

viewtopic.php?f=1&t=130683

[PH]

https://forum.cyclinguk.org/viewtopic.php?f=1&t=130683

Indeed, though this one pre-dates it

[gaz]

[Si]

[Similar threads merged]

[robgul]

We've had a quite a bit of stuff come into the shop's email on this subject in the last few days - although I've been away and haven't yet got fully up to speed with it.

My understandng at the moment is that "FCA approved" is the key to it all with the provider service having to be in effect a licensed credit broker - AFAIK CycleScheme/Cycle2Work and Halfords are not - in order to supply bikes over the current £1,000 voucher value.

Green Commite Initiative IS an FCA approved outfit and has been running a scheme for bike to work with an infinite value for some time (Our shops do them) - AND a finance package for the employer buying the bike AND a better deal for the LBS suppliers [at the moment CycleScheme charges the LBS 10% and an LBS supplying a bike against a Halfords C2W voucher pays 15% (yes you can buy a non-Halfords supplied bike with a Halfords voucher) - the GCI rate is better]

So - one would assume that the non-FCA C2W suppliers will become so very quickly.

Hitherto it has been possible (whether officially or unofficially?) for a C2W purchase to be topped up - i.e. the shop has the £1,000 voucher to redeem (less the %) and the purchaser pays the difference to the total price of the bike direct to the shop. That is now banned, officially.

Rob

[Cyril Haearn]

Seems far too complicated

[Bonefishblues]

Not really. All the providers will register. The end.

[PH]

My understandng at the moment is that "FCA approved" is the key to it all with the provider service having to be in effect a licensed credit broker - AFAIK CycleScheme/Cycle2Work and Halfords are not - in order to supply bikes over the current £1,000 voucher value.
Rob

Halfords were pretty quick off the mark, I expect they'd been briefed in advance.
https://www.cycle2work.info/news/2019-0 ... revolution

Green Commite Initiative IS an FCA approved outfit and has been running a scheme for bike to work with an infinite value for some time (Our shops do them) - AND a finance package for the employer buying the bike AND a better deal for the LBS suppliers

Just had a quick look at that, something I hadn't come across before, interesting that they can offer finance to the employer, I know a small company that might be interested. I also note they say there's no final payment to transfer ownership, makes me wonder if they're operating under a different framework.

Hitherto it has been possible (whether officially or unofficially?) for a C2W purchase to be topped up - i.e. the shop has the £1,000 voucher to redeem (less the %) and the purchaser pays the difference to the total price of the bike direct to the shop. That is now banned, officially.

It's been tolerated but was always against the guidance that said the bike should be wholly owned by the employer for the duration. Some retailers also charged an administration fee to the voucher holder to cover the percentage not redeemed, this was also against the guidance. I think Spa used to do this and it's easy to see that those operating on thin margins are not able to take the hit.

[PH]

Cycling UK's Matt Mallinder praised the decision, but wants the scheme extending to those out of work such as the elderly and the disabled...

It also needs extending to those on low pay, I worked for an employer who was all set to introduce it till they were told they couldn't offer it to the lowest paid so decided not to offer it to anyone.

[robgul]

My understandng at the moment is that "FCA approved" is the key to it all with the provider service having to be in effect a licensed credit broker - AFAIK CycleScheme/Cycle2Work and Halfords are not - in order to supply bikes over the current £1,000 voucher value.
Rob

Halfords were pretty quick off the mark, I expect they'd been briefed in advance.
https://www.cycle2work.info/news/2019-0 ... revolution

Green Commite Initiative IS an FCA approved outfit and has been running a scheme for bike to work with an infinite value for some time (Our shops do them) - AND a finance package for the employer buying the bike AND a better deal for the LBS suppliers

Just had a quick look at that, something I hadn't come across before, interesting that they can offer finance to the employer, I know a small company that might be interested. I also note they say there's no final payment to transfer ownership, makes me wonder if they're operating under a different framework.

Hitherto it has been possible (whether officially or unofficially?) for a C2W purchase to be topped up - i.e. the shop has the £1,000 voucher to redeem (less the %) and the purchaser pays the difference to the total price of the bike direct to the shop. That is now banned, officially.

It's been tolerated but was always against the guidance that said the bike should be wholly owned by the employer for the duration. Some retailers also charged an administration fee to the voucher holder to cover the percentage not redeemed, this was also against the guidance. I think Spa used to do this and it's easy to see that those operating on thin margins are not able to take the hit.

Our stance on C2W is that it's pretty much list price/RRP for the bike and accessories - the % we have to pay to the C2W schemes and the margin on most bike brands makes that the only way it's really viable.

Rob

[Bonefishblues]

Cycling UK's Matt Mallinder praised the decision, but wants the scheme extending to those out of work such as the elderly and the disabled...

It also needs extending to those on low pay, I worked for an employer who was all set to introduce it till they were told they couldn't offer it to the lowest paid so decided not to offer it to anyone.

Statutorily it can't be if it takes their earnings too low, as with all salary sacrifice schemes I'm afraid. The decision not to offer it to anyone as a result is the one that needs challenging.