The Ministry of Defence does not participate in the Cycle to Work Scheme. However, we have our own internal policy which provides for interest free loans for staff to purchase bicycles and safety equipment.
MOD Cycling Policy Frequently Asked Questions's
This page details the Ministry of Defence's Policy regarding cycling to work
FAQ1. What is the MOD's policy on cycling?
The MOD makes provision for advances of salary up to £500 for civilian staff to purchase bicycles for travel to work to help promote healthier lifestyles and reduce environmental pollution.
FAQ2. Will this policy be changing?
US of S, as the Minister responsible for Sustainable Development, has agreed to an enhancement to the existing interest free loan scheme to £1000 to allow staff to purchase a bicycle and safety equipment.
FAQ3. When will this new policy come into effect?
The change requires amendment to the MOD personnel computer systems. This is being currently looked at to see what this entails. It is expected that this new policy will be implemented within the next three months.
FAQ4. What is the position with regard to military personnel?
Military personnel are encouraged to commute by bicycle through payment of mileage allowance for the use of pedal cycles. The allowances for military personnel are currently being reviewed and this loan for bicycle purchase will be considered as part of this review.
FAQ5. How will the success of the new policy be judged?
Uptake of the new policy will be monitored against the uptake of the previous policy and other cycle to work schemes, including DSTL’s. The success of the new policy will be reviewed once it has been in place for a year (to allow for seasonal variations in use).
FAQ6. What is the Cycle to Work Scheme?
The Cycle to Work Scheme is an initiative introduced by the Department for Transport (DfT), under the 1999 Finance Act, which allows employers to loan cycles and cyclists' safety equipment to employees as a tax-free benefit as long as these are used for at least 50% of journeys to work. Individuals have the option to purchase the bike at the end of the scheme, usually after 18 months. The scheme operates by way of a salary sacrifice scheme whereby an individual’s salary is reduced, but pension entitlements are not effected.
FAQ7. Who has already implemented the Cycle to Work Scheme?
The Cycle to Work Scheme has been implemented by only a few smaller departments thus far, such as DfT and Health and Safety Executive. Of the largest departments, MoJ launched a cycle salary sacrifice scheme in 2008 but DWP are still in the implementation stage. The expected take up rate for both schemes is not likely to be greater than 2% of staff and neither Department are expecting many new cyclists to be created from the scheme. However HMRC have formally rejected the scheme and have chosen an interest free loan scheme. DSTL implemented their own Cycle to Work Scheme in September 2008 at three of their major sites as part of their overall travel plan. MOD is keeping an eye on the success of this scheme and those in other organisations.
FAQ8. Is the Cycle to Work Scheme Government policy?
The Cycle to Work Scheme is one of a number of schemes to encourage cycling to work. It is up to each employing organisation to decide whether to encourage cycling and how to go about it.
FAQ9. Why is the Cycle to Work scheme not being implemented?
When reviewing the current policy, USofS considered other options, including the Cycle to Work Scheme. The Cycle to Work scheme is not being implemented at this time because there are various limiting factors which it was felt could dissuade new cyclists from committing themselves to taking up cycling. These include the need to use the bike for 50% of journeys to work, for individuals to have to provide their own insurance, liability for injury, and that the bike cannot be used solely for travel between sites.
FAQ10. Would military personnel benefit financially from the Cycle to Work Scheme?
Work by DG SP Pol suggests that the benefits they currently receive are more advantageous than the likely benefits of the Cycle to Work Scheme.
FAQ11. What are the main purposes of the Cycle to Work Scheme?
To promote healthier lifestyles and reduce environmental pollution.
FAQ12. What are the benefits of the Cycle to Work Scheme?
The environmental benefits of the scheme are fairly minimal. The most tangible benefit is associated with healthier lifestyles.