Posted - November 20, 2025
Across the UK, thousands of households are quietly making one of the most positive lifestyle shifts possible: replacing car trips with electric bikes and, increasingly, electric cargo bikes. This transition — from school runs to supermarket trips — is not abstract policy. It is happening on real streets, with real families, saving real money. And it is being made possible by a Cycle to Work scheme that works.
Yet current rumours of a Government-imposed cap on the scheme threaten to derail the very behaviour ministers claim they want to encourage: active travel, cost-of-living savings, and lower carbon commuting.
To understand the impact a cap would have, it’s worth looking closely at just one recent, entirely typical case.
A real household trying to make a real change
Next week, we will deliver an electric cargo bike to a customer who works for Natural England. He is far from unusual: a parent wanting to use the bike for daily school runs, for his commute, and for local shopping trips — replacing short car journeys with a cleaner, healthier, cheaper alternative.
He lives in Hereford (approximately 140 miles from the Surrey Hills). His bike of choice is the Tern Quick Haul P9, a compact electric cargo bike designed specifically for everyday family life. At £3,100, it is one of the more affordable models in its category — but like any cargo bike, it becomes truly functional only when accessorised for the needs of children and groceries.
He has therefore added:
- Child-carrying modules (Clubhouse Mini, Storm Box Mini, Seatpad, Backrest)
- A Transporteur front rack for shopping
- A heavy-duty kickstand for stability
- A Sold Secure Diamond-rated lock to protect his investment
These are not luxuries. They are the basic requirements that make a cargo bike safe and practical for transporting children and replacing car journeys.
The total value of his order: £4,134.99.
The affordability breakthrough: salary sacrifice
On a standard UK salary, few families could afford to spend £4,000 upfront on a major lifestyle purchase — even if it saves them money every month thereafter. This is precisely where the Cycle to Work scheme is essential.
By spreading the cost over 12 months and paying from gross salary:
- His monthly salary reduction is £344.58
- His actual reduction in take-home pay is £248.10
- His total cost over the year is £2,977.19
- He saves £1,157.80 (28%) through tax and NI relief
This is the difference between possible and impossible.
Without the scheme, this family would almost certainly have remained dependent on a car.
The real comparison: families don’t choose between a cargo bike and nothing — they choose between a cargo bike and a car
Much of the recent commentary around Cycle to Work ignores a simple reality: an electric cargo bike is not competing with a budget conventional bike. It is competing with a car — and cars are dramatically more expensive.
The AA’s own figures show UK motorists spend on average:
- £73/month on car insurance
- £107/month on fuel
Before we even consider:
- Tax (avg. £16/month)
- Servicing (avg. £17.50/month)
- MOT (£4.60/month)
- Lease or finance payments (avg. £300/month)
Put together, the typical monthly cost of running a car is at least £518.10 per month.
By replacing a car with an e-cargo bike, this family is saving around £270.00 every month. That is life-changing money — especially in the middle of a cost-of-living crisis.
And this is all before we factor in:
- Better physical and mental health
- Lower local pollution
- Less congestion
- Greater productivity
- More resilient, active communities
This is exactly the behaviour the Government says it wants to support.
Why a cap would devastate family uptake of cargo bikes
A cap on Cycle to Work is not a small administrative tweak. It would have major, immediate, and damaging consequences.
1. Cargo bikes would become unaffordable overnight
Electric cargo bikes, once equipped for family use, typically cost £3,000–£5,000. A cap set below this level would instantly remove them from reach for most normal households — particularly the families who need the savings the most.
2. It would remove choice — especially for parents and carers
Families need modular accessories for child carrying and for safe loading. These add essential cost. A poorly designed cap would force families to buy inadequate setups or abandon the idea entirely.
3. It punishes exactly the people Government claims to support
The largest benefits of cargo bikes accrue to:
- Working families
- Parents doing school runs
- Households replacing second cars
- Commuters on tight budgets
- Communities facing congestion and pollution
A cap hits these groups hardest.
4. It undermines Net Zero and Active Travel goals
Electric cargo bikes displace large numbers of car journeys — usually the short, polluting urban ones. A cap would significantly reduce uptake, directly contradicting Government transport, climate, and air quality ambitions.
5. It signals that active travel is not taken seriously
Families are not looking for handouts. They are looking for fair access to tools that help them transition away from high-cost, high-carbon transport.
A cap feels like a step backward.
A policy choice with real human impact
Our Natural England customer is not exceptional. He is typical.
His story is repeated in every region: families wanting to do the right thing — for their health, their budget, and the environment — but needing a fair, accessible scheme to make it viable.
The Cycle to Work scheme, exactly as it operates today, is enabling these shifts. It is doing so efficiently, at no cost to the Exchequer, and with enormous public benefit.
A cap risks halting this progress. It risks cutting off the most transformative category of bikes: the ones capable of replacing cars.
For many families, that would be a devastating loss of choice.
Now is the moment to expand active travel — not restrict it
If the Government is serious about supporting working families, reducing reliance on private cars, improving air quality, cutting congestion, and meeting Net Zero, the path forward is clear:
The Cycle to Work scheme should not be capped — it should be protected, strengthened, and promoted.
Because behind every e-cargo bike is not a luxury purchase, but a family trying to build a better, healthier, more affordable life.
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