Holly Cairns (Cork South West, Social Democrats)
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191. To ask the Minister for Finance the cost of allowing the cycle to work scheme to cover the purchasing of child seats or trailers annually; and if he will make a statement on the matter. [15741/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 118(5G) of the Taxes Consolidation Act 1997 provides for the cycle to work scheme. This scheme provides an exemption from benefit-in-kind where an employer purchases a bicycle and associated safety equipment up to a maximum of €1,500 for e-bikes and €1,250 for other bicycles for an employee to use, in whole or in part, to travel to work. These thresholds were increased from 1 August 2020 under the Financial Provisions (Covid-19) (No. 2) Act 2020.

An employee or director can only avail of the Cycle to Work scheme once in any 4-year period, commencing with the date the employee is first provided with a bicycle or bicycle safety equipment. These increases and the change to a 4-year period from a 5-year period were in line with the commitment made in the Programme for Government.

Safety equipment includes helmets, lights, bells, mirrors and locks but does not include child seats or trailers.

The cycle to work scheme operates on a self-administration basis, and relief is automatically available provided the employer is satisfied that the conditions of their particular scheme meet the requirements of the legislation. There is no notification procedure for employers involved. This approach was taken with the deliberate intention of keeping the scheme simple and reducing administration on the part of employers. Therefore the cost of the existing scheme and of any potential changes, such as the inclusion of child seats and trailers, can only be estimates.

While scheme continues to be kept under review by my officials, I have no plans at present to make changes to the cycle to work scheme to include child seats and trailers.