In January 2023, the Irish Government introduced a major update to the Bike to Work Scheme, significantly increasing the allowance for cargo bikes to €3,000. This change aims to encourage more people and families to switch to practical, sustainable transport options, especially electric cargo bikes.
With rising fuel costs and increased demand for eco‑friendly transport in cities like Dublin, this enhanced incentive makes owning a cargo bike or e‑cargo bike more accessible than ever.
What is a cargo bike?
A cargo bike is a specially designed bicycle built to carry heavy or bulky loads. Unlike standard bikes, cargo bikes offer extended frames or integrated storage solutions, making them ideal for transporting shopping, tools, or even children.
Common cargo bike types used across Ireland include:
- Long John (front‑loading cargo bikes)
- Box bikes
- Longtail cargo bikes
- Trike cargo bikes (e.g. Christiania models)
Many modern cargo bikes now come as ebikes, providing pedal assistance that makes longer distances and heavier loads easy to manage, especially in urban environments like Dublin.
Bike to Work - How does it work?
The Bike to Work Scheme allows employees to purchase a bicycle using their pre‑tax salary, resulting in significant savings.
Updated Scheme Limits:
- €1,250 – Standard pedal bikes
- €1,500 – Electric bikes (e‑bikes)
- €3,000 – Cargo bikes and electric cargo bikes
This increased limit directly addresses one of the biggest barriers to cargo bike ownership: upfront cost.
How Much Can You Save?
Your total saving depends on your tax band:
- Higher tax band: up to 49% savings
- Lower tax band: approximately 29% savings
Savings apply up to the €3,000 allowance. Any amount above this is paid directly by the customer.
To apply, simply contact your employer or HR department. Many bike shops in Dublin, including specialist electric bike stores, are registered with the major Bike to Work providers, making the process simple and fast.
Case Study - Dolly Joy Cargo Bike
To illustrate how the Bike to Work scheme applies to a specific cargo bike, we’ll use the Dolly Joy - an excellent two-wheeled e-cargobike which can seat up to three child passengers.
Bleeper sells the basic model of the Dolly Family Cargo for €5,400. The limit of the Bike to Work allowance for cargobikes is €3,000, so the tax savings can only be applied to this amount - the customer pays the remaining €2,400 in full.
The amount of tax you save through the Bike to Work scheme depends on which rate of tax you pay: Workers who pay the standard rate can expect a saving of 29%, while those who pay the higher rate will save approximately 49%.
The illustration below gives a basic breakdown of the savings that can be made on a Dolly Family Cargo via the Bike to Work allowance:
Electric or Non‑Electric Cargo Bike?
While cargo bikes are available with or without electric assistance, electric cargo bikes are now the most popular option and for good reason.
Benefits of Electric Cargo Bikes:
- Effortless riding with heavy loads
- Ideal for hills and longer distances
- Faster commutes without arriving exhausted
- Perfect for families, delivery riders, and businesses
If you’re carrying children, groceries, or work equipment, an electric bike offers comfort, safety, and convenience, especially on Dublin city streets.
Why Buy a Cargo Bike in Dublin?
Dublin is increasingly cycle‑friendly, with improved cycling infrastructure and strong government incentives. A cargo ebike can often replace a second car, saving money on fuel, parking, insurance, and maintenance.
Buying from a trusted bike store in Dublin also means:
- Expert advice tailored to city riding
- Servicing and warranty support
- Assistance with the Bike to Work Scheme
- Test rides and after‑sales care
Bleeper stocks a range of electric longtail cargo bikes from Yuba, including the Kombi E5 shown below.
Electric Bike Shop in Dublin
If you’re looking for a sustainable, cost‑effective alternative to car travel, especially for daily urban use, a cargo bike or electric cargo bike is an excellent option. With the enhanced Bike to Work Scheme, there has never been a better time to make the switch.
Visit your local electric bike shop in Dublin to explore your options and see how much you could save today.
Bleeper