Dáil Éireann Debate, Thursday - 21 May 2026
218. Deputy Barry Ward asked the Tánaiste and Minister for Finance if he will consider expanding the bike-to-work scheme to include people not in employment, such as children and retired people; and if he will make a statement on the matter. [38629/26]
View answer219. Deputy Barry Ward asked the Tánaiste and Minister for Finance if he will consider expanding the bike to work scheme to include people who are self-employed; and if he will make a statement on the matter. [38630/26]
View answer220. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding the total number of people supported under the bike-to-work scheme, broken down by year since 2021; and if he will make a statement on the matter. [38631/26]
View answer221. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding the total number of people supported under the bike-to-work scheme, broken down by county; and if he will make a statement on the matter. [38632/26]
View answer222. Deputy Barry Ward asked the Tánaiste and Minister for Finance the total cost to the Exchequer of the bike-to-work scheme since it was established, broken down by year; and if he will make a statement on the matter. [38633/26]
View answer223. Deputy Barry Ward asked the Tánaiste and Minister for Finance the position regarding any review of the bike-to-work scheme to ensure that it operates as efficiently as possible; and if he will make a statement on the matter. [38634/26]
View answerI propose to take Questions Nos. 218 to 223, inclusive, together.
As the Deputy may be aware, section 118(5G) of the Taxes Consolidation Act 1997 provides for the Bike-to-Work Scheme. This scheme offers an exemption from Benefit-in-kind where an employer purchases a bicycle and/or associated safety equipment for one of their employees (or directors) to use, in whole or in part, to travel to work.
The scheme was introduced as an incentive to increase the number of people commuting to work by bicycle.
Under section 118B TCA, an employer and employee may enter into a Revenue-approved salary sacrifice arrangement under which the employee agrees to sacrifice part of his or her salary, in exchange for a benefit such as those provided under the scheme.
Since 1 January 2023, the Bike-to-Work scheme applies to the first:
• €3,000 of expenditure in relation to a cargo or e-cargo bike;
• €1,500 of expenditure in relation to a pedelec or e-bike; or
• €1,250 of expenditure in relation to any other type of bike.
At the outset, the Deputy should note that the Programme for Government 2025, "Securing Ireland's Future", does contain a commitment to, within the lifetime of this Government, conduct a review of the Bike-to-Work scheme, to boost take-up among all workers.
My Department has commenced initial engagement with the Department of Transport in relation to this review.
The scheme offers and exemption from benefit-in-kind where an employer purchases a bicycle and/or associated safety equipment for one of their employees (subject to the limits of the scheme). A benefit-in-kind is a charge to tax which arises where an employer provides an employee with a benefit, such as a bicycle, car or accommodation. These benefits have monetary value and are treated as taxable income. The Bike-to-work scheme provides for an exemption from this charge.
Therefore, the Bike-to-Work scheme is only applicable where the bicycle and/or related safety equipment is provided by an employer to either their director or someone in their employment. Where an employer-employee relationship does not exist, the scheme does not apply. Therefore, the scheme does not apply in the case of retired, self or unemployed individuals, or children.
Likewise, salary sacrifice arrangements can only be entered into between an employer and a director or employee.
The scheme was implemented as tax-exempt benefit-in-kind in order to keep the implementation as simple as possible and reduce administrative burden for employers and employees.
In addition, the scheme operates on a self-administration basis, and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation.
As the scheme does not require any notification or application procedure, there are no data centrally available on the number of people availing of the scheme, the types of bicycles or equipment purchased, or a county-by-county breakdown of the recipients.
However, the Department of Finance produce estimates of the costs and number of recipients annually, as part of the annual Tax Expenditures in Ireland report, and the annual publication of the Tax Expenditure Passports. Both of these publications are available on my Department’s website, at: www.gov.ie/en/department-of-finance/collections/annual-tax-expenditure-reports-and-tax-expenditure-passports/
The latest published estimates of the cost and number of claims under the scheme are set out in tabular format below.
|
- |
2020 |
2021 |
2022 |
2023 |
2024 |
|
No. of claims |
22,000 |
25,000 |
25,000 |
25,400 |
25,400 |
|
Exchequer cost (€M) |
4.5 |
5.5 |
5.5 |
5.8 |
5.8 |
