Green Commute Initiative

Green Commute Initiative: employee bike scheme with a social focus

Green Commute Initiative (GCI) is a UK-based social enterprise that acts as a provider of the Cycle to Work Scheme, a system through which employees acquire bikes and cycling equipment via salary sacrifice. The company presents itself as an ethical alternative within this type of scheme, reinvesting its profits into improving the scheme itself and its services. Its stated goal is to get more people out of cars and onto bikes for their commute to work, with the resulting health improvements and reductions in pollution and congestion.

How the scheme works and what can be purchased

The scheme allows employees to pay for their bike and eligible equipment through salary sacrifice, which reduces income tax and National Insurance contributions. The estimated savings quoted by the company range from 28% to 47%, depending on the tax band and personal circumstances of each employee. There is no £1,000 limit in the scheme, and the employer can set their own limit. GCI does not charge the employee an ownership fee at the end of the initial hire period, which protects the accumulated savings.

Employees can choose from a wide range of bikes: standard, electric, cargo, folding and specialist or adapted cycles for people with disabilities. Eligible cycling and safety accessories can also be included, such as helmets, lights, locks, bells, panniers, racks, child seats, reflective clothing, pumps, puncture repair kits, tools and spare parts. Excluded are bike computers with or without GPS, cameras and any non-reflective clothing, including non-reflective waterproof clothing. The bike must be used mainly for qualifying journeys, such as commuting to work or travelling between workplaces.

Options for employers and employees

The scheme is available to any UK employer, regardless of size or sector. Employees can participate provided that salary sacrifice deductions do not reduce their pay below the National Minimum Wage. For those who cannot use salary sacrifice for this reason, the company indicates that alternative cycling options may be available.

GCI offers two application platforms: Corporate GCI, designed for large organisations with a high volume of applications and which requires an employer code, and Instant GCI, a pay-as-you-go system aimed at smaller organisations with occasional applications and which does not need a code. The company warns that a Corporate application should not be attempted through the Instant platform, as this would delay the process.

For employers who wish to provide shared-use bikes, there is a Pool Bike Scheme that gives employees access without them having to buy a bike individually.

Fees, employer savings and agreement terms

Access to the scheme is free for both employees and employers. However, administering the scheme has a cost that is covered by a commission that providers charge to bike shops. GCI states that it charges the lowest commission in the sector, 5%. Most retailers absorb this cost, although some may pass it on to the customer; in that case, the retailer must inform the customer upfront and the amount may be added to the bike package, but it cannot be charged at the point of collection.

During the salary sacrifice period, the employer also makes savings, as their National Insurance contribution is reduced by paying only on the cash portion of the salary. According to the company's information, the employer saves 13.8% of the voucher value. The salary sacrifice agreement is established between employer and employee and covers repayment of the voucher cost; it can be for any period longer than three months, with 12, 18 or 24 months being common, although it can extend up to 60 months.

Retailer network and purchasing process

GCI works with a large national network of independent and national bike retailers. Employees can find a registered shop through the website or buy directly from the manufacturer. The company also offers specific information for bike retailers and manufacturers.

Corporate and regulatory information

Green Commute Initiative is registered in England with number 10315668 and authorised by the Financial Conduct Authority with reference number 755361. Its VAT registration number is GB 253 1578 08. The company has been operating since 2016 and uses the Green Commute Initiative brands and its logo as registered trademarks.

Location and contact

Unit F Membury Business Park, Ermin Street, Lambourn Woodlands, Hungerford RG17 7TU · Phone: 020 3740 1836 · Email: info@greencommuteinitiative.uk · Hours: Monday to Friday 9:00 to 17:00