The Telegraph, which in the past year has not been shy when it comes to publishing critical and often questionable stories about cycling, has once again been accused of promoting a “nasty, culture wars” agenda against cyclists, after the newspaper’s head of money claimed this morning that “middle-aged men in Lycra earning six figures” were “shamelessly” exploiting the government’s Cycle to Work scheme to buy “fancy new toys”.
In the article, titled ‘Rich cyclists are getting brand new bikes – courtesy of you, the taxpayer’, Ben Wilkinson argued that since the Cycle to Work scheme was revamped six years ago, enabling employers to offer bikes worth over £1,000, it is now being “routinely abused by wealthy cyclists who have no intention of using their expensive gift from the taxpayer on their commute”.
Introduced in 1999, the UK government’s Cycle to Work employee benefit scheme offers a tax-friendly initiative which enables people to buy a bike and cycling accessories through salary sacrifice.
Effectively, the initiatives see employees ‘loan’ a bike from their employer tax-free, initially for a year. That loan can then be extended, with employees able to eventually buy the bike at a nominal price, calculated factoring in the bike’s depreciated value over time.
During its first 20 years, tax-free purchases using Cycle to Work were nominally capped at £1,000 (though some providers did not impose this limit and former cycling minister Michael Ellis pointed out that the £1,000 ceiling never officially existed for larger employers registered with the Financial Conduct Authority).
Nevertheless, in 2019, the Conservative government announced a revamp of the Cycle to Work scheme, making it easier for bikes worth over £1,000 to be purchased using the initiative, as part of a drive to “increase the use of e-bikes to help tackle congestion, speed up commutes, and cut travel costs”.
Cyclists in London talking in cycle lane (credit: Simon MacMichael)
However, six years on, the Telegraph’s Wilkinson has called for another rethink of the scheme, arguing that “commuters simply do not need a bike worth more than £1,000”.
“The next time you see a Lycra-clad cyclist tearing through a red light, consider this: their hugely expensive bicycle was likely paid for by you, the taxpayer,” Wilkinson’s column begins.
But despite that provocative opening paragraph, the journalist maintained that “this isn’t an anti-cyclist article”.
“I own three bikes, none of which the taxpayer helped pay for. The world would be a better, and healthier place, if more of us rode bicycles,” he continued.
“Cyclists should stick to road rules like anyone else, and any suggestion that cyclists should pay road tax is moronic. Roads are maintained using money from all taxes, and vehicle excise duty is levied on emissions.
“However, there are gaping holes in this tax break that mean your money is not being spent as it should be.”
> Telegraph journalists told "check your research" after front page claims cyclists hit 52mph chasing London Strava segments... despite that being faster than Olympic track cyclists
According to Wilkinson, since the cap was lifted in 2019, the cost to taxpayers has been £615m, the writer also noting a “spike in demand” for the scheme in 2020 and 2021, which he links to increased leisure time during the Covid-era lockdowns.
While admitting that more expensive e-bikes should be subject to a higher ceiling, Wilkinson argued: “There can be no justification for asking the taxpayer to give a dentist earning £200,000 a £4,200 discount on a £10,000 bike. My commuter bike cost £300 and has saved me thousands in Tube fares.”
He continued: “I suspect Whitehall and the City are full of top earners who have exploited this scheme to buy an expensive bike that they would not dare to bring into London for fear of it being stolen.
“And there’s no doubt that some have used it to drop their incomes below £100,000 so they can still continue to qualify for tax-free childcare.”
> “Unfair” Cycle to Work scheme “problems” need to be addressed, admits government minister
The financial journalist also pointed to a report published by cycling and walking charity Sustrans in September, which found that 38 per cent of people in the UK on low incomes or in unemployment (or around 1.9 million people) are currently priced out of buying a bike due to the high costs and lack of discounts available.
Sustrans noted that, in its current guise, Cycle to Work excludes anyone who would earn less than the minimum wage of £17,000 a year once the scheme’s salary deductions are taken into account, as well as those who are not in work, self-employed, or work for a non-participating employer.
The consequence of the scheme’s minimum entry point, the charity pointed out, is that just 30 per cent of people on a low income or not in employment have access to a cycle. On the other hand, data from Sustrans’ Walking and Cycling Index found that 59 per cent of people in professional occupations have access to a bike.
The report prompted Simon Lightwood, Labour’s Parliamentary Under-Secretary of State for Transport, to admit that the government “absolutely recognises” there are “problems” with the current Cycle to Work scheme.
Cyclists in London male and female in cycle lane (credit: Simon MacMichael)
In his article in the Telegraph today, Wilkinson concluded: “It’s a good example of a policy that came with good intentions that has been allowed to mutate into something it was never supposed to be.
“Cycle to Work should not be scrapped, but ministers should consider if taxpayer cash should really be going towards fancy new toys for middle-aged men in Lycra earning six figures.”
However, despite his insistence that his criticism of Cycle to Work didn’t amount to an “anti-cyclist article”, Wilkinson’s depiction of “Lycra-clad” cyclists “tearing through red lights” has been resoundingly criticised by cyclists on social media.
“I couldn’t read it behind the paywall, I could only see the first sentence. But as that mentioned Lycra and red lights, I knew I didn’t want or need to read any more,” Christopher Day wrote in response to the Telegraph’s story.
Referring to Wilkinson’s assertions that expensive bikes are being paid by “the taxpayer”, Adespoto said: “Because cyclists and taxpayers are distinct demographics? It’s a nasty culture-wars article from a petro-industrialist Tory shit rag.”
“‘Now, let’s be clear. This isn’t an anti-cyclist article’. It absolutely is,” added Wiebes.
> "People won't bother reading the truth, the damage is done": Cyclists frustrated Telegraph newspaper not required to put "52mph cyclists creating death traps" correction on front page like original headline
Of course, as noted above, this isn’t the first time that the Telegraph has been criticised for its attitude towards cyclists.
In August, press regulator IPSO (the Independent Press Standards Organisation) ruled that the newspaper was in breach of its Editors’ Code for an inaccurate front page story claiming cyclists are riding at 52mph in London’s 20mph zones while chasing Strava segments.
Telegraph front page/ cyclists in Richmond Park (credit: Simon MacMichael/Telegraph)
The headline appeared on the newspaper’s front page last May and told readers “Lycra lout cyclists are creating death traps” and riding at 52mph in London, a bizarre claim that turned out to be the result of dodgy GPS data taken from Strava that would, if true, have meant that people are cycling through London’s streets at speeds faster than what Olympic track sprinters hit in the velodrome.
Unsurprisingly, the story was much criticised and ridiculed, Active Travel Commissioner Chris Boardman calling it “bonkers” and the IPSO receiving 96 complaints.
> "Mums, dads, sons and daughters being labelled as killers. It’s just got to stop": Chris Boardman comments on Telegraph '52mph in a 20mph zone' article as it emerges co-author is former BBC fact-checker
However, despite the IPSO’s intervention, which described the error as “significant”, many expressed frustration that the newspaper was not required to publish a front-page correction, as the regulator instead accepted that the original acknowledgement made six days after publication and hidden away in the Telegraph’s ‘Corrections and Clarifications column’ was sufficient.
But just two months after the IPSO’s intervention, the Telegraph was again accused of manipulating and blurring photos of cyclists riding at 15mph through Regent’s Park to make it look like they were travelling at faster speeds than they were, for a column titled ‘Let’s get tough on the scourge of rogue cyclists’.
And later in November, the Telegraph published information from a “dossier of collision data” from The Royal Parks in London and claimed it revealed “the full threat posed to pedestrians by dangerous and illegal cycling in the country's most famous parks”.
In the article, titled ‘How rogue cyclists in London’s parks have knocked down children and the elderly’, the Telegraph published information from the dossier and said it referenced “speeding” and “aggressive” cyclists being involved in hit and runs, ignoring zebra crossings, travelling on illegal bikes, and hitting pedestrians so hard they are “catapulted into the air”.
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64 comments
Regardless of the gratuitously nasty tone which of course is typical of the Telegraph, Wilkinson has a point about the tax relief situation in question.
Yes, you can effectively buy yourself a £10K Pinarello with £420 off the price if you're a higher rate taxpayer. And that's pretty obscene imo.
The easy way around that would be to make the tax relief a fixed rate of 20%, and to also introduce a cap over which you receive no tax relief. Say, £3K?
And then the govt could perhaps even find a way of using the saved money to assist low paid workers in buying a modest bike to commute on.
The current system is simply too blunt an instrument.
Well...
He's right on the system being totally abused. At the beginning their was an upward limit of £1000 of the amount you could finance with the scheme. Now a days plenty of my cycling friend buy fancy bikes with it but you won't see any of these bikes on your commute. They still use the train or worse, drive to work while their bike is only for weekend rides.
You can barely buy a bike worth riding for £1000.
Never mind 52 mph: I briefly managed 602,913 km/h.
Only 3 x kudos? I suppose you were only riding for 10 seconds 😂
If you’re a dentist earning £200000, you'll be paying about £83000 a year in tax, I'll sleep ok if they're getting 4 of that back on a bike
Have to say I agree with the article but not how it's written. The country needs people to pay their fair share and salary sacrifice is robbing the state of funds. The scheme should be available to the lower paid or a tax reduction on cheaper machines.
It was only recently there was an article about the rising cost of cycling. Surprisingly this may be due to the C2w scheme as other similar government funded schemes only seem to line the pockets of the suppliers.
I was talking to a fund manager at the gym and he said his firm allowed a max of £12k for a bike and equipment. This is just giving rich people the opportunity to cut costs at the taxpayers expense. My current employer is offering £5k which is bonkers too.
By all means help out the lower paid workers with a bike but those of us who earn more can afford to pay. Don't even get me onto the subject of salary sacrifice cars..... What a joke.
Exactly.
A decent Ebike, lights, clothing, helmet, arguably cameras if you're commuting, a decent lock etc and you won't have a huge chunk of change from £5k. Agree that £12k is extracting the liquid waste product, though.
What an idiot. Most or at least some of the companies that offer cycle to work will also offer car schemes from companies like octopus. So instead of 2 wheels you get 4 and pay for this out of your salary pre tax. Is this not hugely expensive cars paid for by the taxpayer?
Ben Wilkinson is an utter can't. He can't grasp the damage his toxic vitriol does, nor does he care. Like many arrogant hacks his objective is click bait; at any cost. So much of his feeble mind has raced through Gammon Bingo he must be having a competition with the Daily Fail for mass hate speech of the month. THIS is why I spend many months a year cycling in Europe. The UK is by far the most hateful, spiteful, ignorant culture I've known, towards anyone who is riding a bicycle. We have to thank decades of pro-driver governments who have reinforced this narrative to the point where drivers can kill & maim people on bicycles and it barely makes the news. News scribbled by hacks like Ben the can't.
He does, its about engagement with this type of writing, doesn't matter what kind of engagement - the more hate the better.
To be fair to the UK not everywhere is like that. I went for a 5 hour ride in Cornwall yesterday, making the most of the weather. Absolutely stunning scenery, quiet (mostly) well-surfaced roads and not a single close pass, many went right over to the opposite lane where they could. In addition, many pulled in and waited for me in narrow roads or thanked me if I did the same when I was close to a wider point.
Bliss 😊 Though the tough wind and 16% climbs weren't so much fun!
Of course what would be hilarious if someone were to go check the Telegraph Media Groups job benefits
https://careers.telegraph.co.uk/what-we-offer
And spotted they run a cycle to work scheme
Does it state what the limit is? Maybe the journo could get a shiny new carbon steed and some lycra, get to the office faster so he can have an extra 5 minutes in bed and not be such a nob.
I talked to my boss about C2W when I was looking to buy my commuter/ winter/ gravel bike. In the end I didn't follow through because it effectivelt ties you into buying new stuff all from a single source. In the end I bought a BNIB frame from ebay (40% off list price), Fulcrum wheels at 50% off from CRC who were desperate for cash flow, with most of the rest being bits I already had on other bikes.
I know my sister in law has used C2W for a couple of her jobs, getting £400 hybrids that then get nicked
TBH it's not a great way of subsidising bikes as it provides the biggest subsidies to those on the highest incomes, who need them the least. It's also open to abuse, because many people buy bikes that they never actually intend to ride to work on.
Just because it was published in the Telegraph with a clickbait headline and a few anti-cycling bingo lines doesn't mean the argument is wrong.
Absolutely, and I kind of agree C2W is a square peg trying to fit a round hole of a scheme.
But we can have that debate without resorting to name calling or outgrouping a bunch of people, why can't a supposedly serious journalist in a broadsheet newspaper not do the same ?
Looking at some of the other posts on the article, I'm not sure that we can have this debate without name calling!
With you. A straightforward way to reduce the price* of cycling for everyone, that might work for local bike shops as well as Halfords, would be to make bikes VAT exempt, up to some cost threshold. So I have never understood the hoop-jumping of C2W unless the intention is to provide tax avoidance for higher earners and extra custom for bigger businesses.
*Ok, it is possible that suppliers would feel confident in raising exc. VAT prices or offering only higher spec stuff, but that is equally true of C2W.
On the other hand, if your primary concern was reducing the unfairnesses of tax-efficient schemes that bring the biggest benefits to those that need them least, you probably wouldn't start with the Cycle to Work scheme.
Absolutely disgusting article!
As the Government announces plans to reform the unsustainable burden of benefits increasing at an unprecedented rate (paid by tax payers) this lame excuse for a journalist chooses to.....
Focus on a largely unclaimed tax relief incentive for bicycle use!
Bizarre, perhaps some comparison of tax relief and tax deductable depreciation on ICE motor vehicles may have assisted but obviously that would completely destroy his wafer thin point entirely???
8 years ago, as a self-employed sole trader, I bought a brand new BMW i8 which, at the time, qualified for 100% extended capital allowances on its full purchase price, excluding options, being a PHEV. Probably not what the scheme was aimed at, but it means I'm the last person who would ever criticise a rich city trader for buying, for example, a Pinarello Dogma F with Campagnolo Super Record Wireless 😁😁
Torygraph journo in "makes a couple of valid points in but in a fashion designed to stoke a culture war to sell more of his filthy rag" shock.
Lets be honest if he had a jot of integrity or a moral compass he wouldnt be writing for that rag.
Id be quite happy to see RTW capped at £1500 for a pushbike and £3-4k for an ebike but I can do that without making irrelevant points about who rides them and what they wear.
I'd love to read a Guardian article critical of (whatever Telgraph staff hold dear to their hearts) bereft of facts just to see if they suddenly care about reality. Ha!
I'm a tax payer. I bought my own bike. Therefore, my bike was funded by a tax payer! Politicians, of whatever colour, are experts at manipulating information/data.
“this isn’t an anti-cyclist article”.
Putin is a peaceful, benign leader.
The earth is flat.
Liz Truss was our best PM.
It's a "special investigation".
"this isn't an anti-cyclist article"
The Earth isn't flat?? Damn, what happened to the ice wall, did climate change melt it? 😉😁
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