The Association of Cycle Traders (ACT) has been approached by a large volume of cycle retailers throughout the UK calling for an immediate change to the way the Cycle to Work scheme is being implemented.

The majority are unwilling to speak publicly for fear of being excluded from business opportunities by established Cycle to Work providers.

Now, the ACT – along with parent company BIRA (British Independent Retailers Association), which represents independent retailers across multiple sectors throughout the UK – is calling on all parties to work together to act in reforming Cycle to Work as the priority growth strategy for the cycle trade and for all UK citizens who want to cycle more.

Bike shops are the interface with employees who are using Cycle to Work and have funded the scheme for more than two decades.

These retailers are fearful of being punished for seeking to grow the scheme in a manner that allows the cycle trade to make some retained profit.

The ACT believes that time has come for the industry to take steps to reform the Cycle to Work employee benefit so that it engages all parties in the supply chain, and helps realise the full potential of Cycle to Work.

A statement released by the ACT reads: “The Cycle to Work employee benefit scheme introduced by the UK Government over 23 years ago has never reached its full potential and is at risk of losing further momentum at a critical time for the industry and cycle usage in the UK.

“The delivery structure of Cycle to Work is flawed primarily due to the lack of direct engagement by the larger entities within the UK trade and the drive for commercial income by the established players in the delivery of the employee benefit.

“There are two dominant players in the market: Halfords and Cyclescheme and an ‘alliance’ of providers that appear to put business profits well ahead of cycling development.”

Cyclescheme recently imposed a change to its partner agreement with retailers to ensure, what it called, “fairer pricing for Cyclescheme customers”.

This means that retailer partners will be unable to charge additional fees or surcharges on cycle to work purchases made through the scheme. The revised retailer agreement comes into effect on Friday, December 22, 2023.

The ACT statement continued: “The independent retail cycle sector has wrongly been the cash cow of Cycle to Work for over two decades and this has to change now. The recent enforced changes in pricing policy applied by some parties and blamed erratically upon FCA legislation is simply the ‘straw that broke the camel’s back’.

“Wider industry fears in tackling this long-term issue have been fired by industry lethargy, limited financial exposure for many and the bogey man threat that Cycle to Work legislation might be withdrawn, a fear that an increasing number of IBDs are now viewing as an ‘opportunity’.

“At a time when the industry is actively seeking greater support from Government for cycling – including a call for more cycle incentive subsidies – one of the most obvious actions that the industry should take itself is reform of the Cycle to Work employee benefit. Once we have a united, fully participating industry in this area, the ACT believes that there is lots of room for further development with Government, especially around electric incentives that the car industry benefits from with Government support in the UK.”

The ACT adds that alternative schemes are in place, but the industry needs to come together to win employer schemes, put aside brand competition and focus on collectively winning more cyclists and make more of Cycle to Work together.

The ACT urges all cycle businesses interested in reforming Cycle to Work to actively engage in this campaign.

To pledge support to the campaign, visit: cycleassociation.uk/cycle-to-work