Cycle to Work Scheme 2026: Full Guide + Best E-Bikes to Choose

Commuting costs continue to rise and more workers in the UK are making the switch to a cycle to work scheme electric bike to reduce their commuting costs and to travel more eco-friendly. If you've been considering the purchase of an e-bike but have been intimidated by the cost, now is an excellent time to take advantage of your workplace benefits to make it a reality in 2026. 

What Is the Cycle to Work Scheme?

Under the scheme you could obtain a new bike, including an e-bike from your employer and repay it as a series of tax free payments from your salary. The payments are made prior to tax and National Insurance, so you will pay less in total than if you purchased outright. The amount of savings can be from 25% to 47%, based on your tax bracket and provider.

It's not a new concept, but cycle to work scheme 2026 updates from a number of providers have made it easier to apply for a quality e-bike.

How a Salary Sacrifice E-Bike Works

The E-Bike salary sacrifice plan is as follows:

• Once you've decided on your E-Bike (and most schemes don't limit how much you can spend) you'll be on your way!

• The bike is purchased by your employer and "hired" to you.

• Repayment is accomplished via monthly salary deductions prior to tax deductions.

• Once the period of hire has expired, you can purchase the bike at the end of the hire for a small cost.

• It's a real win-win because the money goes directly to your salary, so you and your employer save on tax which is why the scheme is one of the most popular employee benefits in the UK. 

Choosing the Right Cyclescheme Retailer

Not all retailers will take part in all schemes, so it is important to verify retailer compatibility. All of the major cyclescheme retailers that UK employees depend on work with Hygge Bikes, including Cyclescheme, Bike2Work, Halfords Cycle2Work, Vivup, Green Commute Initiative, Cycle Solutions, Dash, Caboodle and My Benefits World. Check the full list of providers on our Cycle to Work Scheme page and at checkout just choose your employer's provider. 

Best E-Bikes to Choose in 2026

The choice of the best e-bike is dependent on various factors, including your commute, the space you have for storage, and the type of terrain that you will be riding. Here are some of our best sellers:

• Lossø Commuter E-Bike – A streamlined, hassle-free commuter e-bike designed for all-day city riding, offering a comfortable ride and an impressive range.

• Virum Folding Ultra-Light E-Bike – Ideal for those who prefer to use a bicycle with public transport or have space constraints at home or at work.

• The automatic gear shifting feature on the Virum Auto Urban E-Bike eliminates the need for manual gear selection, making stop-start urban commutes a breeze.

• Sorø All-Terrain Folding E-Bike – Perfect for riders who face a mix of terrain or extended riding distances.

• Herlev Auto E-Bike – A handy all-day bike for everyday usage.

See all the electric bikes side-by-side and compare specs, range and price. 

Tips Before You Apply

Make sure you know the limit of your employer's scheme and if accessories such as helmets or locks are covered.

Check with your provider before you place an order that your preferred retailer is on their list.

When working out overall savings, take into account the cost of the ownership fee at the end of the hire period.

If you don't want to wait for the approval of your employer's scheme, you can ask about the finance options that are available — Hygge Bikes also has flexible finance solutions. 

Final Thoughts

A cycle to work scheme electric bike is one of the smartest methods to modernise your commute without the hefty price tag in 2026. $0 tax savings, a variety of retail partners and Hygge Bikes' expanding e-bike offerings make it a great time to convert to e-bikes. To get started today, check out our Cycle Schemes page. 

FAQs

What is the Cycle to Work Scheme?

The Cycle to Work Scheme is a government-supported employee benefit that allows eligible workers to obtain a bicycle or e-bike through their employer and repay the cost through salary sacrifice. Payments are made before tax and National Insurance deductions, helping reduce the overall cost of purchasing a bike.

Can I get an electric bike through the Cycle to Work Scheme?

Yes. Many Cycle to Work providers allow employees to purchase an electric bike through the scheme. Eligible riders can spread the cost through monthly salary sacrifice payments while benefiting from potential tax savings.

How much can I save with a Cycle to Work Scheme e-bike?

The amount saved depends on your income tax band, National Insurance contributions, and scheme provider. Many riders can reduce the overall cost of an e-bike compared to purchasing it outright.

Which Cycle to Work providers does Hygge Bikes accept?

Hygge Bikes works with a wide range of approved providers, including Cyclescheme, Bike2Work, Halfords Cycle2Work, Vivup, Green Commute Initiative, Cycle Solutions, DASH, Caboodle, and My Benefits World. You can find the full list on our Cycle to Work Scheme page.

Which Hygge e-bike is best for the Cycle to Work Scheme?

The best e-bike depends on your needs. The Lossø is a popular city e-bike, the Virum is a lightweight folding e-bike, the Virum Auto and Herlev Auto are automatic e-bikes, the Vester Series offers the comfort of fat tyre e-bikes, and the Sorø is an all-terrain folding e-bike.