Royal Mail Group signs new contract on bike plan

Royal Mail Group has ended its tripartite arrangement with Futuremedia and Halfords Business Services for its cycle-to-work plan, and instead handed the entire scheme to the retailer to run.

Previously the scheme was managed by Futuremedia, which oversaw all hiring agreements and legal paperwork as well as running a website and a call centre for staff queries. Halfords Business Services, meanwhile, provided the bikes loaned to employees.

After Halfords extended its services to include the management of cycle-to-work schemes, Royal Mail Group terminated its contract with Futuremedia.

Shan Lawrence, voluntary benefits manager at the Royal Mail Group, said that the use of a single provider would make the operation much smoother.

“Halfords has realised it is missing a trick in the opportunity for it to take the whole process – to take the management and the provision of the bikes. When it entered the market of salary sacrifice, it [only offered] the end product,” she said.

The new service will allow staff to access information online about the scheme, and calculate the impact of a salary sacrifice. They will also be able to look at the range of bikes on offer, although Royal Mail Group caps the amount each employee can spend at £500.

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Approximately 2,500 Royal Mail staff have taken up the cycle-to-work scheme. It has proved popular among staff who travel to work before public transport is up and running for the day.

The scheme is unrelated to the bikes used for postal deliveries.