SS17023 Cycle to Work Scheme

To reduce environmental pollution and promote healthier journeys, the 1999 Finance Act introduced an annual tax exemption which allows employers to hire bicycles and safety equipment to employees (up to the cumulative value of £1,000) as a tax-free benefit. Kent County Council's HR team run a Cycle to Work scheme in pre-determined windows, usually in May and September each year, for 6-8 weeks each window.

During this time, eligible employees can take part in the salary sacrifice scheme and acquire bicycles and safety equipment for the primary use of commuting to and from work. At present, the bicycles are supplied by the incumbent Cycle to Work scheme provider and their own national network of suppliers.

The incumbent Cycle to Work scheme provider also works with independent, local small businesses. Kent County Council requires the ongoing provision of a Cycle to Work salary sacrifice scheme to Kent County Council employees.

The Council are inviting potential suppliers to tender for the provision of a Cycle to Work scheme whereby the successful supplier would be expected to organise and manage the scheme on behalf of the Council. This will be a Framework Agreement which will allow bicycles and equipment to be purchased as required on a call-off basis depending on employee demand.

This will increase the range of bicycles and equipment available to Council employees and increase the opportunities local (SMEs) Small and Medium Enterprises have to participate in the scheme. Each scheme has an estimated value of £42k and two are run per year.

On the basis of a 36 month framework agreement, the total estimated value is £252k and with one optional extension of 12 months, the total estimated value would be £336k, but no guarantee is given as to the actual value of the framework agreement. The Council do not currently pay any additional monies for the running of the scheme itself and any money spent acquiring the bicycles and equipment is recouped in full from the employees over the hire period (usually 12 months).

The Council currently receives cash back from its incumbent provider and this would be required to continue under the new framework agreement. The framework agreement is anticipated to commence upon 29th August 2017 and will continue for a period of 36 (thirty six) months, with one optional contract extension of 12 (twelve) months unless terminated in accordance with the framework agreement terms and conditions (Appendix F) on the Kent Business Portal.