In October 2026, the first budget of Andy Burnham’s government will be presented. The Treasury has asked for ideas. Dan Simpson, our policy and public affairs manager, explains how we can unlock cheap transport for people across England.
Cycling benefits the economy, the NHS and makes us healthier
Unlocking cheaper travel for everyone
The rising cost of living over the last few years has left many people struggling.
Whether they can’t afford heat, food or just the things which make life enjoyable, it’s not fair.
The cost of transport is a key part of that. According to the think tank IPPR, 11% of people’s costs go on getting around, and that rises to 18% for the poorest fifth of households.
The prime minister has already acknowledged this, bringing back the £2 bus fare cap to give people a cheaper option. But the government’s looking for more ideas.
Here’s ours: a voucher scheme that cuts the cost of buying a bike if you’re on a low income, self-employed or receive a pension.
Why having different travel options saves you money
I’m lucky. I live a couple of minutes from a tube station. I’ve got a bike. London’s buses are also pretty good near me.
That means I can get the tube when I need to rush to work. I can cycle if I want to save money.
If my bike got stolen and I couldn’t afford a new one, I could catch the bus, which would take longer than the tube but cost a lot less (thanks, hopper fare).
If you don’t have that choice, you can’t save money when you need to.
People on low incomes are less likely to have choice about how they travel.
They’re less likely to own a car and far less likely to have access to a cycle: only 30% do, compared to 59% in professional and managerial jobs.
That means that despite needing to save money the most, they don’t have access to as many cheap options.
Not everyone has the travel choice you get in inner London
Not being able to get around restricts you
Without affordable travel options, people are cut off from the very opportunities that could help them get ahead.
Imagine you see a job advertised. It looks great, you’re qualified. There’s just one problem. You don’t have a car, and the bus doesn’t go that way.
If you had a bike, you could get there. As it is, you can’t apply for that job. The irony is that once you had that job, maybe you could afford the bike. It’s a chicken and egg problem.
If politicians really want to reduce the number of young people not in employment, education or training, they need to fix this.
We found young people from the lowest earning 20% of households are 1.4 times more likely to have a low level of mobility, compared to those from the highest earning 20% of households.
But it’s also other stuff. If it costs more to get around, you might think twice about other trips.
That means staying at home more. Getting lonelier. Missing out on the little things which we all enjoy – a coffee with a mate, a walk round that park you love which is a few miles away.
Everyone deserves to be able to get around.
A bike could help you reach your favourite park
People on low incomes want to cycle
When we asked people on low incomes if they want to start cycling or cycle more, 37% said yes.
But it was clear that cost was a barrier. Almost two in five said that the cost of a cycle was unaffordable. That’s where our proposal for a voucher comes in.
We tested different ways to provide people with cycles. Sometimes, people propose giving out free bikes.
This can work sometimes, but it doesn’t meet most people’s needs. What if you need a trike because you’re not confident on two wheels? What if you need an e-bike because your commute is long? Or a cargo bike so you can take your kids to school?
That’s why we think a voucher is more appropriate for more people.
Once we’d settled on a voucher, we spoke to people on low incomes and used computer modelling to decide what would work best. £100? 20% off? What’s best?
Ultimately, we came up with a 40% discount.
If you’re earning a decent wage, you can access the Cycle to Work Scheme already and get money off a bike, saving 30-42%.
But because of the way it’s run, you can’t use it if you earn less than £17,000 a year, as you’d drop below minimum wage.
It’s silly that those who need help the most can’t get a discount. That’s where this voucher would come in, giving a similar discount.
Recent research has found that around 2 million people want to cycle but are priced out by the initial cost of a cycle and accessories.
Everyone benefits
Obviously, this voucher will be good for the people who receive it. But what else will it do?
Our modelling found that it’ll bring back more money than it costs, growing our economy with three times as many benefits as costs.
It’ll save the NHS money, preventing 13,000 sick days.
It’ll take 4 million car journeys off the roads, cutting congestion.
The first signs of movement
There are signs of movement in the PM’s back yard. While he was mayor, Greater Manchester trialled offering vouchers, aimed at exactly the group we’re talking about.
It was a massive success, became oversubscribed, and had to be closed in just nine days.
Now, we’re asking Andy Burnham not to reinvent the wheel. Take what he’s already done and roll it out nationally.
Let’s give people access to a cycle regardless of how much money they have, and wherever they live.
Greater Manchester has trialed vouchers under the leadership of Andy Burnham as mayor
