Nearly One in Five Baby and Toddler Groups Could Close as Running Costs Rise

Baby and toddler groups and classes in England are warning of potential closures as running costs continue to soar, research from leading membership organisation the Early Years Alliance has found.  

Also known as stay and play groups, baby and toddler groups provide children under five and their parents with vital opportunities to take part in early years activities and socialise with other families.  

However, according to a recent online survey carried out by the Alliance, which received 169 responses, the financial health of groups is at risk. Around three quarters (76%) of respondents said the cost of running their group had increased over the past year, with quarter (25%) noting a “significant” increase.  

On average, running costs surged by 20% on average. As a result, nearly one in five (17%) said they are likely to face closure in the next 12 months, while a further 1% confirmed they had already closed. 

The findings come nearly two years after the Alliance’s Hidden Gems report which warned that without further support, there would be a significant reduction in the number of baby and toddler groups. But as today’s survey shows, the situation has not improved. A third (33%) said they have been unable to cover the cost of running their group using the group's income alone with respondents relying on grants, donations or subsidised venues. 

However, with young families continuing to face a range of challenges many are reluctant to pass on costs to parents. Of those (63%) who charge, two thirds (67%) have not increased fees in the past year.  

Nearly three in five (59%) said their group has been affected by inflation within the past year. Of those affected more than half (57%) have been unable to buy resources such as toys, books and equipment. Other respondents said they have cut back on activities due to soaring room and heating costs.  

Commenting Neil Leitch, CEO of the Early Years Alliance, said: “Baby and toddler groups are a lifeline for countless families, not only providing children with opportunities to play, socialise and learn but also offering parents and carers much-needed guidance and connection at what can often be a lonely and challenging time.  

“Our research shows that sustained cost pressures have resulted in a situation where at best, these groups are unable to buy much-needed equipment and at worst, are questioning whether or not they can remain open at all – and yet, despite a recent increase in focus on supporting young children and their families, the role of baby and toddler groups and classes are all too often overlooked when it comes to government policy. 

“At a time when the government has repeatedly reiterated the importance of the early years in ensuring that every child is given the best possible start in life, it's crucial that – alongside early years settings and Best Start Family Hubs – these groups are given the support they need to deliver their crucial services long into the future.”  

Survey comments  

“This is a vital front-line service that is completely undervalued and overlooked by government. Too much investment goes into statutory services and family hubs. We are not seen or supported yet we carry most of the resource and dedication to being there for our families with children in the earliest years of their lives. More needs to be done to support our services financial to become sustainable.” 

“We are a much-needed resource for families of pre-school children with disabilities and additional needs. Once families find us, they really value our support. We need more resources to reach more families.” 

“The absolutely huge increase in room hire for the community centres I use has crippled my business in the last nine months. The increase jumped to over 60% extra cost in fees which means I’m only making a loss despite having busy classes leaving me no money to actually use as an income. With a young family and household bills to cover, I’m now really struggling. The impact on family bookings due to their own increased bills means they can’t afford to attend so numbers are dropping too.”