HRMC says that once implemented, a cycle-to-work scheme must be available to all employees with no groups of employees excluded. However, a salary sacrifice arrangement cannot be used if in so doing the employee’s gross pay drops below the NMW. To avoid this, the employee could be offered a lower value cycle package and/or a longer than usual hire period.
Where employees are paid at NMW and salary sacrifice is not permitted, employers must make an alternative offer. This could include loaning a bike without salary sacrifice or making available a pool of bikes for those staff to avoid them being excluded from the offer of a cycle. The University continues to operate the ‘Cycle loan scheme’, offering an interest-free loan of up to £2000, repayable over 12 months.