C2W - The end

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ACS

Legendary Member
From a non too promising start, I managed to cajole the Director of Finance to take on the C2W scheme. Edinburgh Bike Coop became the scheme provider and staff, seeing the obvious benefits, started to commute. From 1 commuter (me) to 12 from a staff of 110 in 3 months made the effort all worthwhile. They installed showers and allow us to adopt little used rooms and storage spaces to keep our bikes near to working areas and secure within the building. Senior management supported the scheme and actively promoted it with in the organsiation.

Went up to see him today about the possibility of getting a second bike (n=n+1) when my current agreement ends (March) he said he was having to pull the scheme because of a change in the rules.

He said the Government had changed the tax position, adjusted the rules on NI contributions and cited something to do with those on a national minimun wage not being able to afford the repayments so not being able to make the scheme totally inclusive then the company was not longer in a position to offer it to anyone else. The rule change effectively caused the closure to the scheme.

Sad day, we are being forced to exit a scheme where everyone and every thing related to it was a winner, except the Government of course, so they have closed it down.
 

fossyant

Ride It Like You Stole It!
Location
South Manchester
It's not.........the issue about minimum wage has already been there - we've got a disclaimer on our policy...... I'll look...........

Here...

However, not all employees may be eligible to participate in a salary sacrifice scheme (for example if the value of the salary reduction would reduce your salary to below statutory minimum wage). Where employees are unable to participate in the salary sacrifice part of the scheme, the Company has made alternative arrangements so that you can still participate in the scheme but not via salary sacrifice.

They probably have got interest free loans sorted, not sure exactly.

How many folk do you have that don't earn enough to pay take...minimum wage would have you there, but they may be part time ?
 

marinyork

Resting in suspended Animation
Location
Logopolis
Someone said this at a cycling meeting I went to a while ago, however I myself cannot see it, agreeing very much with what Fossy and TheDoctor have said.
 
Agreed. There haven't been any changes to the Cycle to Work rules. All an employer has to do is to be sure that any salary sacrifice used to aid the bike purchase doesn't then bring the employees' salary below the minimum wage.

Sounds like they're making up an excuse to avoid having to keep running the scheme.
 
OP
OP
ACS

ACS

Legendary Member
Thanks for this. I will revisit the question early next week. It may the case of making excuses or a misinterpretation of facts. He is a good man to deal with, very pro sport(runner of some accomplishment) so I may be able to find some middle ground with him.
 
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