International News

Denmark to consider tax credits for cycling to work

The Danish Cyclists’ Federation has suggested that people who cycle more than 1.8 miles to work could be financially compensated for their efforts.

Denmark is the second-most cycling country in Europe, with 30% of citizens cycling daily (DTU Transport and Lund University). In the UK, that number is just 3% (British Social Attitudes Survey).

Currently, Danes who travel more than 7.5 miles to work by any means of transportation are eligible for tax credits. The federation wants to change this so that people who cycle more than 1.8 miles also see a financial benefit.

This suggestion is welcomed by Cycling UK, an organization that champions and promotes cycling. Senior Campaigns & Communications Officer Sam Jones said that both incentive and reward was necessary to get more bikes on the road:

“Such schemes as proposed by the DCF can only help, as they provide a further incentive and reward for people to try alternative ways of travelling to work

It’s not a question of either or, as the Cycle to Work scheme is that initial step people can take, while a reward system is continuous – so long as the individual keeps on cycling!”

30% of Danes cycle every day, compared to only 3% of Brits

The closest Brits can get to tax credits for cycling is buying a bike through their employer using schemes like Bike2Work or Cyclescheme, which deduct the price of the bike and equipment from the pre-tax salary, creating a tax saving.

Some employers also run their own schemes. GSK, one of the UK’s leading pharmaceutical companies, gives its payroll staff the opportunity to enrol in the Bike Miles incentive. This scheme pays participating employees £1 per day for cycling to work, which can then be spent on bikes and gear.

However, it’s not just access to a bike that decides whether people choose to cycle to work or cycle at all. At GSK, despite the financial encouragement and stellar facilities, just 3% of employees cycle to work, slightly higher than the national average of 2.8%.

Some cyclists in the UK are also sceptical of the positive effects of tax credits. Hang Po Tang rides 12 miles a day 6 days a week to work and back from his home in Epsom near London. For him, cycling to work was a question of want, not financial motivation.

“I don’t think tax credits would encourage people to cycle to work. Either you want to or not. Such a scheme could also be open for fraudulent abuse.”

“There is enough encouragement to get more people cycling to work with lots of cycling lanes, even if some lanes are not well designed.”

2.8% of workers in the UK cycle to work

According to Cycling UK just 2.8% of Brits cycle to work despite 42% of people aged 5 and over having access to a bike. You’re more likely to cycle if you’re a student or aged 21-49, especially if you have a higher household income (Cycling UK).

Sam Jones pointed to policy, infrastructure and funding as three main issues in getting people to cycle. The organisation experiences that some people backtrack when they feel forced to take up cycling.

“We have experienced that there is a lot of resistance and people saying: If I can’t drive my car then what’s next?”

“There is a long way for us to go and it is a lot more to do.