Encouraging the financing of e-bikes over cars could significantly speed up the electric vehicle revolution

In an effort to promote sustainable transportation, the UK government offers financial support for purchasing pedal-assisted electric bicycles (e-bikes) through schemes like the "Cycle to Work" scheme and various local grants. However, there is no single national subsidy program exclusively for e-bike purchases.

One major motivator for participants in e-cargo bike trials has been guilt about car use. The main financial help for buying e-bikes is the cycle to work salary-sacrifice scheme, which is limited to employees on standard payroll tax (PAYE workers) whose sacrifices don't drop their pay below minimum wage.

Despite a government evaluation of free e-bike loans concluding they were poor value for money, a follow-up study found that 20% of borrowers had bought an e-cargo bike after a year. This suggests that e-bike incentives may have a lasting impact on reducing car dependency.

Estimates of annual carbon savings from e-bikers avoiding car trips vary, from as little as 87kg CO2 to as much as 394kg. Given a conservative benefit to cost ratio of 5.5:1, an investment in e-bike grants could reap more than £3.6 billion in social benefits.

E-bike incentives can appeal to the lower-paid, who use their e-bikes more than wealthier buyers. These incentives have also helped low-income households realize their preferences for less dependence on cars. E-cargo bike users have reported mental-health benefits and satisfaction at combining fitness with functional everyday trips.

However, there are questions about the new government policy. Some wonder whether people who can afford a new car will still buy one with the discount, and whether car dealers will simply reduce their own discounts.

The government policy also includes financial assistance for replacing cars, vans, taxis, and motorbikes with electric options, announced in February, totaling £120 million. Policies that encourage active travel, including cycling, have been assessed by the government to have huge benefit to cost ratios, averaging 9:1.

Up to 50% of UK travellers are "malcontented motorists" and "active aspirers" who want to travel differently. With e-bike incentives and the growing awareness of the environmental impact of car use, it seems that a shift towards sustainable transportation is on the horizon.

Encouraging the financing of e-bikes over cars could significantly speed up the electric vehicle revolution