Bike schemes are considered by many employers as ideas that sound great in theory but which are highly impractical as reports show that majority of people are not willing to part with their cars.

In Ireland, among seven of the 10 companies voted best places to work for, only one has introduced the programme which allows employers and employees to claim back tax on the purchase of a cycle and equipment while two said they were hindered by a lack of demand.

Under the programme, an employer can purchase a bicycle and cycling accessories for an employee, worth up to €1,000, and then claim back a percentage of this through pay related social insurance. Alternatively, workers can pay their employer for the bike by contributing from their salary. The employee then benefits from tax relief.

However, the economic downturn has hit many Britons, rendering the cycle to work packages less popular. Recently, London mayor Boris Johnson brushed off concerns that the city’s forthcoming bike hire scheme will suffer from high levels of theft.

Reports suggest that the scheme which is to come into operation mid-2010, will join other ventures aimed at making London more cycle-friendly in time for the 2012 Olympics. It is thought that there will be 400 locations where members of the public can hire and return bikes across more than nine London boroughs.

Rise in theft and vandalism

Paris’s Velib bike rental scheme was thrown into jeopardy after it was hit by a series of theft and vandalism with reports suggesting that just eighteen months into project, more than half of the initial 15,000 bikes have vanished. The company behind the project JCDecaux has warned that because replacing lost bikes is proving expensive, it will force them to terminate their initial ten year contract.

However, the London mayor is optimistic that the city’s scheme would learn from the mistakes made by other schemes around the world. There are plans to include extra measures to protect it, such as making ‘docking points’ easy to use and encouraging for bike users to use.

The London scheme is seen by critics as costly after revelations emerged that helmets bikers will not be compelled to wear protective head gear. This means that the decision to wear a helmet is solely an individual’s choice and this could impact on bike insurance in case of an accident.

Credit busting means for commuters

It is not all gloom as figures shows that the number of mopeds sold has increased significantly with sub-125 scooters and sub-125 motorbikes in recent years.

Bike insurance providers have come up with various schemes that are competitively priced and which offers standard riders an insurance quote online instantly. Scooters and other sub-125s are increasingly seen as a cheaper commuting option during the credit crunch.

Industry experts say that it costs less than a car to buy and insure a 125 machine which can be less than 10 pence per mile to run. A majority of scooters can achieve 100mpg, so as well as saving money on insurance, road tax, servicing and fuel riders are reducing their carbon footprint.