BA mediates industry talks on ‘cycle to work’ commissions
September 28, 2020
The Bicycle Association announced today that it has been acting as an impartial mediator in talks between a number of its members on the topic of ‘cycle to work’ commissions.
Cycle to Work commissions are the fees charged to retailers by employer scheme providers for bicycles and equipment sold using the Government’s ‘cycle to work’ tax break.
At the request of four major UK brands: Giant, Raleigh, Specialized and Trek, and Cyclescheme, one of the largest scheme providers, the Bicycle Association has been facilitating a series of discussions with the aim of helping the group agree a new approach.
The Bicycle Association is a not-for-profit association which works to support the whole industry, and it must remain neutral on commercial arrangements between its members.
However, the Bicycle Association’s overall mission is to grow cycling and the market, and given the important role of the Government’s cycle to work tax break in bringing new people to cycling, the Association was pleased to act as the strictly impartial mediator in these discussions.
Steve Garidis, Bicycle Association Executive Director, said:
We recognise that many sectors of the industry are involved in selling and supplying bikes and equipment via the cycle to work scheme, from benefits providers who offer the scheme to employers and employees, to suppliers and retailers who provide and maintain the bikes and equipment. Each plays an important role and the Bicycle Association wants to see all parts of the supply chain working together in a way which is profitable and sustainable for each.
After several months of discussions, we’re pleased that the parties have successfully agreed a new approach. The discussions have focussed on how to build trust and support for the scheme, and how to fairly reflect the value and costs in the commission structure.
The parties themselves will provide the commercial details. However, we are pleased that the outcome will lower, cap, and equalize commissions for retailers who work with Cyclescheme.
Whilst these talks were between a group of our members, we believe the outcome is positive for the whole industry, and for cycling.
The group has asked the Association to continue its mediator role and to convene quarterly meetings to monitor progress.