Read the Salary Sacrifice section in the Civilian Pay & Allowances Policy.
Cycle to Work Scheme
Save up to 47% on the cost of a bicycle, accessories and safety equipment through salary sacrifice.
Who is it for?
All permanent civilian staff who have completed at least two months’ service working in:
MOD Main
DE&S
SDA
RFA
Fixed term appointees may also apply, provided that your line manager endorses the application to confirm that you will be employed by MOD throughout the entire recovery period of the salary sacrifice arrangement. You will not be able to partake in the scheme if a monthly salary deduction would reduce your salary to less than the National Living Wage. The scheme does not include overseas staff including LEC’s, Agency staff and Interns. Employees are not eligible to hire a bicycle if they are absent on nil or half pay, receiving sick pay at pension rate, unauthorised leave or other leave without pay.
What do I get?
The cycle to work scheme enables you as an employee to hire a bicycle, accessories and safety equipment, to use mainly for commuting purposes by way of a salary sacrifice scheme for an initial period of 12-months (with the option to extend, end the scheme or buy at the end of the 12 months). This enables you to make savings by reducing your Income Tax and National Insurance achieving savings of between 32% and 47%.
Cycle2Work has been chosen by MOD to act as our third-party facilitator. They are an independent company created to help both employers and employees make the most of the Green Transport Plan Initiative and associated tax concession offered by the Government.
The scheme is supplied by Halfords - Cycle to Work, the UK’s leading scheme provider. Cycle to Work offer the widest choice with access to over 1200+ retail locations throughout the UK and online redemption via Tredz.co.uk. Cycle2Work are partners with Tredz as well as a considerable number of bike shops in the local area including household names such as Halfords. Cycle2Work customers are not limited to any particular bike or accessory brand and therefore can choose the best for quality and value-for-money. FAQs about the Cycle to Work scheme can be found on the Halfords Website and on the My Lifestyle Platform (under benefits > Cycle 2 Work).
Next Steps
Start by following the 'How to apply' steps. Once you have completed this and have your 'Letter of Collection' you can follow the 'How to order steps'.
How to Apply:
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Have a look on Halfords or Tredz to find what bike and accessories you want, keeping a note of the total cost (you can also go to a local independent retailer).
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Click ‘Apply now’ and enter the total value you are applying for.
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Once approved by DBS you will receive a ‘Letter of Collection’.
How to Order:
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Use your ‘Letter of Collection’ to order your bike or accessories instore or online at Halfords, Tredz or an approved independent bike store.
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Pay monthly. This will automatically come out of your salary before tax and will be split equally over a 12-month period.
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Enjoy your bike! Find commuting routes and local cycle groups.
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At the end of the 12-months you will have the option to; enter a zero-cost extended hire, end the scheme or purchase the bike or accessories.
Page last updated: 22 January 2026
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