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UK grants for e-bikes
February 6, 2025
As the UK races towards its net-zero goals, electric vehicles are often held up as a poster child for sustainable transport. Generous subsidies and tax incentives fuel their growth, with companies and consumers alike reaping the rewards. Yet, in this drive towards electrification, the potentially transformative low-carbon transport option offered by e-bikes remains overlooked. Why does the UK government fail to incentivise e-bikes with the same zeal as electric cars, despite their immense potential?
Consider this: e-bikes use a fraction of the energy, are far cheaper to manufacture and run, and could revolutionise urban mobility. For most of trips most of us take every day (over 70% are under 5 miles), they're unbeatable.
While EVs require dedicated charging networks or hefty home installations, e-bikes charge from a standard plug. No queues, no big bills, no range anxiety. A typical battery charge costs about 10p. It's as simple as charging a phone.
In our congested cities, e-bikes require little more than a bike rack, freeing up valuable public space. Contrast that with EVs, which still need significant parking real estate, perpetuating car-centric urban planning.
Public health is another glaring blind spot. e-bikes don't just reduce emissions, they get people moving. Commuting by e-bike offers low-impact exercise, improving cardiovascular health and mental well-being. In a nation grappling with obesity and rising NHS costs, the potential savings are colossal.
There's also a social equity argument. E-bikes are far more affordable than electric cars, widening access to green transport. Subsidising them could democratise mobility, particularly in low-income communities where car ownership is out of reach.
So why the reluctance? Partly, it's about perception. Policymakers, swayed by the car industry's clout, often see EVs as the natural successor to petrol and diesel. There's also a cultural bias: cars are still seen as the 'serious' mode of transport, while bikes - electric or otherwise - are dismissed as sporting activity.
Then there's the infrastructure dilemma. Investing in e-bikes means rethinking our cities - building more protected bike lanes, creating safer junctions, and integrating cycling into public transport networks. It requires a holistic vision for urban mobility, something successive governments have struggled to deliver.
Insurance for an e-bike
Grants for e-bikes in the UK may be thin on the ground, but for our part, we offer 30% off cycle insurance prices for electric bicycles.
Our bicycle insurance includes everything you’d expect, like theft, accidental damage and vandalism cover – plus a few things you might not. For example, we have a no-quibble battery theft policy, zero devaluation for life, and if you break down on your electric bike, or run out of battery, you can call us 24/7 and we’ll arrange a rescue. Whether you ride a tricycle, folding, mountain or cargo electric bike, our comprehensive policy has you covered.
Every ETA bicycle insurance policy includes the following as standard:
• Theft, accidental damage & vandalism
• E-bike battery theft cover
• Cycle Rescue (breakdown cover for your electric bicycle and you)
• No devaluation of your bike over time
• £2m third party PLUS £20,000 personal accident cover
• Shed and garage storage
• Low standard excess of 5% (£50 minimum)
Read a full list of everything we include as standard.
e-bike grants and subsidies by country
Many countries and cities looking to promote sustainable transportation, reduce traffic congestion, and cut carbon emissions, now offer grants or subsidies on e-bikes:
• The French government offers a grant for the purchase of e-bikes under the “bonus vélo” initiative. This program provides up to €400 towards the purchase of a new e-bike, and in some regions, additional local subsidies can be added to this amount.
• Germany’s federal government doesn’t offer direct e-bike grants, but many states and municipalities do. For example, cities like Munich provide incentives and some employers offer subsidies to employees who buy e-bikes for commuting.
• Belgium has a strong commitment to promoting e-bikes, especially for commuting. In some regions, people can receive a subsidy of up to 20% against a new e-bike. Additionally, there is a tax benefit for employers who provide e-bikes to their employees.
• Oslo has provided grants of up to 25% of the cost of an e-bike, with a cap of NOK 5,000 (approximately €500).
• America has various local and state-level incentives, although there is no nationwide scheme. States like California have been particularly proactive, offering rebates and incentives through programs like the California Bicycle Coalition’s e-bike incentive program. These can cover a significant portion of the purchase cost, especially for low- and middle-income applicants.
• In Canada, several provinces and cities offer e-bike incentives. British Columbia, for example, has an e-bike rebate program that provides up to CAD 1,700 for those on low-income individuals to buy an e-bike. Quebec offers a rebate of CAD500, and various municipalities across the country have their own schemes.
• The Australian state of Victoria has been active in promoting e-bikes through its Sustainable Transport Program, which provides rebates for e-bike purchases.
• In Japan, some local governments offer subsidies for e-bike purchases as part of their efforts to reduce traffic congestion and carbon emissions. For instance, the city of Yokohama provides subsidies of up to ¥20,000 for residents buying e-bikes.
• South Korea has introduced several e-bike incentive programs at the city level. Seoul, for example, offers subsidies that cover up to 30% of the cost of an e-bike, encouraging more residents to switch to electric bicycles for commuting .
Here in the UK, e-bike incentives are less widespread compared to some European countries. The Cycle to Work scheme allows employees to purchase e-bikes through a salary sacrifice arrangement, offering tax savings. Unlike electric cars, vans and motorcycles, e-bikes do not benefit from a government grant when buying new.
Information correct at time of publication.
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