Is it time governments start paying people to bike to work?

Bicycles and e-bikes are low hanging fruit that can solve a lot of problems if taken up en masse: the population will be healthier both physically and mentally cutting down on health care costs, more people leaving cars at home or not purchasing one to bike to work means lower emissions allowing governments to meet climate commitments and, well, clean air. And that’s just two of the most obvious benefits. Meanwhile, cars and trucks do the opposite and are a drain on local resources. Net negative.

What to do. What to do.

In North America, where cars reign supreme, a powerful idea could gain ground like it is in some areas of Europe — paying people to bike to work. As our cities grapple with traffic congestion, pollution, and sedentary lifestyles, it’s time to consider a new approach.

The next step beyond incentivising the purchase of e-bikes, is to actually pay people to commute to work by bicycle and leave the car at home. Here, we explore why it’s time for North America to follow Europe’s lead in incentivizing cycling to work, uncovering the benefits for both individuals and the environment.

The Rise of the E-Bike

In an era where sustainability is paramount and the need for greener transportation options has never been more pressing, a two-wheeled revolution is taking Europe by storm. While traditional bicycles have long been a favored mode of eco-friendly transport, a new player has electrified the scene – the electric bicycle, or e-bike.

Electric bicycles, affectionately known as e-bikes, have seamlessly blended the convenience of motorized travel with the health benefits of pedaling. These two-wheel wonders come equipped with an electric motor and battery, offering a helping hand to riders as they conquer steep hills and zip through their daily commutes at higher speeds. For many, e-bikes have become the perfect solution, allowing them to arrive at work without breaking a sweat while still enjoying the benefits of moderate physical activity.

Copenhagen

Cash for Commutes

The shift towards e-bikes is not just a personal choice but a societal one, fueled by innovative bike-to-work programs. These initiatives, prevalent across many European countries, take the form of tax incentives that reward employees for cycling to work instead of driving personal cars. The concept is simple – swap your car keys for bike pedals, and your monthly paycheck gets a tax-free bonus.

The trend of paying Belgians to bike to work is not just on the rise; it’s set to become a mandate, revolutionizing how people commute. In recent years, the number of employees receiving a bicycle allowance has surged, and this upward trajectory is expected to continue as Belgium’s bicycle allowance becomes obligatory.

In 2022, nearly one in three employers (29%) in Belgium voluntarily provided their workers with a bicycle allowance. This allowance, calculated based on the distance commuted by bicycle, has become a sought-after perk, with the share of Belgians benefiting from it doubling in just five years, from 7% in 2017 to 14% in 2022, according to HR service provider SD Worx.

The geographical distribution of this benefit varies, with Flanders leading the way, where almost one in five private employees (18%) receive a bicycle allowance, while in Brussels, it’s a modest 6%.

What’s even more exciting is the mandatory bicycle allowance. This shift will undoubtedly boost the number of cyclists on the road. Those who commute by bike but didn’t yet have a specific bicycle allowance through a collective bargaining agreement (CBA) are to receive a tax-free allowance of €0.27 per kilometer from May 1, 2023 up from €0.25 per kilometer in 2022. The agreement between employer and employee representatives within the National Labor Council ensures that this allowance covers a maximum of 40 kilometers per day, equating to a daily maximum of €10.80.

“In 2021, one in seven employees (14%)  received the cycling allowance. That is a decrease of one third: pre-corona it was almost one in four (22%),” said Veerle Michiels, mobility expert at SD Worx, in a press release for light electric vehicle trade association LEVA EU. “The median amount per cyclist per year increased from €73.92 in 2019 to €91.20 in 2020. However, it fell again to €76.80 (for the first 8 months of 2021). The allowance is a great incentive to get employees on their (e)cycles.”

A Continent-Wide Movement

Across Europe, there are hundreds of tax-incentive and purchase-assistance schemes for bike-to-work programs are making an impact. These programs aim to unlock a multitude of benefits by swapping cars for bikes. Fewer cars on the road mean less traffic congestion and reduced emissions, leading to cleaner, more efficient cities.

Moreover, cycling, whether on traditional or electric bikes, brings a wealth of health benefits. Numerous studies have highlighted the advantages of cycling, making it a win-win for individuals and cities alike.

However, financial incentives are just one piece of the puzzle. To truly transform commuting patterns, investments in safer cycling infrastructure are essential. These investments create an environment where cycling is not just encouraged but also safe and convenient.

Brussels, Belgium

The UK’s Cycle to Work Scheme

One of the examples of these programs is the UK’s Cycle to Work Scheme, introduced by the government in 1999. This scheme allows cyclists working in the UK to save at least 32 percent on the cost of a bike and cycling equipment. Since its inception, it has been embraced by over 1.6 million commuters working for 40,000 different employers, all in pursuit of “healthier journeys to work and reduced environmental pollution.”

A Global Bike to Work Impact

France has also joined the movement, offering up to €0.25 per kilometer cycled to work, resulting in a 50 percent increase in active cyclists during the pilot phase.

In Italy, incentives vary by location, with some regions offering as much as €0.21 per kilometer for bike commuters. The government also provides mobility vouchers toward the purchase of a new bike.

Spain’s Got Next?

And the revolution continues to spread. Spain’s Comunidad Valenciana has introduced a grant for bike and personal mobility vehicle (PMV) purchases. There is also a proposal submitted to the Valencian parliament proposing a nonbinding incentive of up to €360 for employees who choose to cycle to work. The group responsible is also advocating for deductions in personal income tax and repairs, encouraging more people to embrace cycling.

This European trend of paying citizens to cycle is a relationship of trust, relying on users to manually upload their traveled kilometers through mobile apps. This approach could soon become a staple in Spain, marking another stride toward a more sustainable future.

As bike-to-work programs continue to gain momentum, it’s evident that the wheels of change are in motion. With Europe leading the charge, the world watches as commuters embrace a healthier, more sustainable way to get to work, one pedal stroke at a time. And cities reap the benefits.