COST-OF-LIVING CRISIS: Baby and toddler groups warn of mass closure risk, despite growing need for support for new families, new survey finds

Baby and toddler groups in England are warning of impending closures as rising costs place significant strain on settings, at a time when the need for support for new families is growing sharply during the cost-of-living crisis, a new survey from leading membership organisation the Early Years Alliance has revealed.  

Baby and toddler groups, sometimes referred to as ‘stay and play’ groups, are groups aimed at families, which provide both adults and young children with opportunities to socialise and take part in a range of early years activities. 

The Alliance’s survey, which ran online from 2 to 16 March and received 272 responses, found that around three-quarters (76%) of respondents had seen the costs associated with running their baby and toddler group increase in the last year, with more than a quarter (26%) reporting ‘significant’ increases as running costs surged by 20% on average. As a result, one in five (20%) respondents are concerned that their group could permanently close within the next year.   

The survey also found that, despite the fact that three in ten (28%) groups have increased compulsory or voluntary attendance fees (by 15% on average), one in five (21%) have still been unable to cover running costs using the group’s income alone. Of those, nearly a third (29%) have had to dip into their own personal savings to make up the difference. 

The worrying trend comes at a time when many families with young children are facing a number of challenges amid the cost-of-living crisis and are increasingly in need of support from services like baby and toddler groups. According to the survey, over half (53%) of respondents said families in attendance were facing mental health challenges, while almost the same proportion (52%) said families have been negatively affected by rising energy costs.  

More than half (51%) of baby and toddler groups said they have signposted families to relevant services, such as foodbanks, and a quarter said that they or their group has donated toys, book or other resources (25%) to families. A similar proportion (26%) have reduced the cost of attending sessions for struggling families.  

Recruitment and retention issues were also highlighted as a key struggle with almost three-quarters (72%) citing the ability to attract new staff or volunteers as a challenge. Meanwhile, more than one in ten (11%) said they do not have as many resources, including play equipment, tables and highchairs, as they would like, with many also saying that they have had to prioritise covering running costs over upgrading old equipment and purchasing new resources. 

Further information about the survey findings is available in the Alliance’s new report, Hidden gems: An overview of the challenges and opportunities facing baby and toddler groups   

Commenting, Neil Leitch, CEO of the Early Years Alliance, said: “Baby and toddler groups are a lifeline for families across the country. Not only do they provide an opportunity for children to socialise, learn and play, but they also offer wide-ranging and much needed support for families which have become even more vital in recent years.” 

“Yet as our survey shows, countless groups are being forced to sacrifice not only financial security of the group itself, but in some instances, the personal savings of those who lead them, to ensure they are able to remain open and offer the very best support for families. If this continues, it is clear we will see a significant reduction in the number of groups able to continue operating in the long-term.  

“It is absolutely vital, therefore, that as we continue to fight for greater financial and practical support for the early years sector more widely, we ensure that this includes baby and toddler groups. At a time when the government claims to be prioritising support for new families, it’s critical that these vital services are given the help they need to continuing offering care and support for years to come.” 

 

Survey comments 

  • “We only ask for £1.50 [per session] despite the fact that many groups cost more. If we know there are parents struggling, we understand that they won’t be able to make a donation and that’s fine. We would rather see people accessing the group and support them, than them not attend because they can’t afford it.” 
  • “Rising costs are definitely an issue. To date, the venues I use have only raised the prices slightly (although this is an hourly increase, so the impact is moderate). I suspect that costs will increase further to take account of energy cost increases.” 
  • “The lack of funding and support in this area is staggering. We should be able to provide babies, young children and their families/carers as much support as possible to give them a good start in life. Leaving this to volunteers and hoping that they exist and can do a good job is not the right thing to do.” 



EDITOR NOTES

FULL SURVEY FINDINGS  

 

The survey was carried out from 2 to 16 March, and received 272 responses.  

 

Do you currently own, work for or volunteer for a baby and toddler group or class? 

Yes, 91% 

No, 9% 

 

How would you best describe your role at your baby and toddler group(s)? 

Owner, 19% 

Manager, 8% 

Group leader, 47% 

Session leader, 10% 

Assistant / support staff, 8% 

Administrator, 1% 

Other (please specify), 6% 

 

Are you paid for your role at your baby and toddler group or do you work on a voluntary basis?  

Paid, 42% 

Voluntary, 58% 

 

Do you have a child/grandchild or other relative's child who attends your baby and toddler group? 

Yes, 26% 

No, 74% 

 

When does the group operate?  

Term-time-only, 81% 

All-year-round, 15% 

Other (please specify), 4% 

 

How long has your group been operating?  

Less than a year, 9% 

1-2 years, 13% 

3-5 years, 12% 

6-10 years, 15% 

11-15 years, 7% 

16 – 20 years, 7% 

More than 20 years, 37% 

 

How often do you hold sessions? 

More than once a week, 33% 

Weekly, 59% 

Fortnightly, 3% 

Monthly, 0% 

Ad hoc, 0% 

Other (please specify), 4% 

 

What is the maximum number of children that can attend your group per session? 

0-10, 6% 

11-20, 31% 

21-30, 35% 

More than 30, 29% 

 

Which of the following ages of children attend your baby and toddler group? (Please select all that apply) 

Under-ones, 94% 

One-year-olds, 94% 

Two-years-olds, 96% 

Three-year-olds, 90% 

Four-year-olds, 68% 

Five-year-olds, 14% 

Over-fives, 3% 

 

On a typical session, are the number of places you offer filled?  

Yes – but we do not have a waiting list, 38% 

Yes – and we have a waiting list, 17% 

No - we often have spare places, 45% 

 

How do you cover the costs of running the group (Please select all that apply) 

Parent fees, 69% 

Funding from government/local authority, 4% 

Personal loan, 0% 

Business/community loan, 1% 

Charity grants, 12% 

Loan from family/friends, 0% 

Donations from family/friends, 5% 

Donations from parents/carers attending the group, 31% 

Donations from wider community, 9% 

Donations from charity, 4% 

Personal income/savings, 10% 

Not sure, 1% 

Other (please specify), 15% 

 

Has the cost of running your group increased in the last 12 months? 

Yes, significantly increased, 26% 

Yes, somewhat increased, 28% 

Yes, slightly increased, 22% 

No, stayed the same, 19% 

No, slightly decreased, 0% 

No, somewhat decreased, 1% 

No, significantly decreased, 0% 

Not sure, 5% 

 

By approximately what percentage has your running costs increased over the last 12 months? 

Average, 20% 

 

Do you pay rent/occupation costs? 

Yes, 55% 

No, 43% 

Not sure, 2% 

 

Have your rental/occupation costs increased in the last 12 months? 

Yes, significantly increased, 19% 

Yes, moderately increased, 25% 

Yes, slightly increased, 21% 

No, stayed the same, 29% 

No, slightly decreased, 1% 

No, moderately decreased, 0% 

No, significantly decreased, 0% 

Not sure, 4% 

 

 

By approximately what percentage has your rental/occupation costs increased by over the last 12 months? 

Average, 19% 

 

Over the past 12 months, have you been able to cover the cost of running your baby and toddler using the group’s income?  

Yes, 71% 

No, 21% 

Not sure, 9% 

 

How have you made up the difference? 

Agreement with landlord to reduce rent payment/s, 12% 

Agreement with landlord to delay rent payment/s, 2% 

Used group savings account, 15% 

Used personal savings account, 29% 

Gone into group overdraft, 0% 

Gone into personal overdraft, 4% 

Taken out a personal loan, 0% 

Taken out a business loan, 0% 

Received a loan from family/friends, 4% 

Other (please specify below), 46% 

 

Do you charge families to attend your baby and toddler group? 

Yes, 75% 

No, but we ask for voluntary donations, 21% 

No, and we don’t ask for voluntary donations, 4% 

Not sure, 0% 

 

Has the amount that you charge families increased in the past 12 months? 

Yes, 28% 

No, 72% 

Not sure, 1% 

 

By roughly what percentage has the cost to attend your baby and toddler increased by? 

Average, 15% 

 

How has the amount you tend to receive in voluntary donations per session changed, if at all, over the last 12 months? 

Significantly decreased, 5% 

Moderately increased, 4% 

Slightly increased, 13% 

Stayed the same, 45% 

Slightly decreased, 13% 

Moderately decreased, 11% 

Significantly decreased, 2% 

Not sure, 7% 

 

Has your baby and toddler group been impacted by inflation over the last 12 months?  

Yes, 54% 

No, 25% 

Not sure, 21% 

 

Which of the following effects, if any, has inflation has on your group?  

We have had to reduce the number of places available to families, 4% 

There is a lower demand for places, 30% 

We have had to reduce the length and/or frequency of the sessions, 10% 

We have been unable to buy resources, such as books, toys and equipment, to use in the group, 43% 

We have had to stop providing drinks and/or snacks, 12% 

Other (please specify), 35% 

 

Over the last 12 months, have you been able to attract and retain enough volunteers and/or paid employees to meet demand for places at your group? 

Yes, 60% 

No, 33% 

Not sure, 8% 

 

Which, if any, of the following challenges have you faced?  

Unable to attract new volunteers/staff, 72% 

Volunteer unable to commit the time needed, 48% 

Parent/carer volunteers move on when their child no longer uses the group, 46% 

Unable to keep up with growing demand from families, 13% 

Shortages in first aid trained volunteers/members of staff, 17% 

Other (please specify), 6% 

 

During a typical session, do you have as many resources (e.g play equipment, tables, chairs/high chairs) as you like? 

Yes, 57% 

Yes, but we would like to upgrade them, 32% 

No, 11% 

 

Thinking of the future of your baby and toddler group, do you think there is a change that the group could close within the next 12 months?  

Yes, it is very likely, 5% 

Yes, it is somewhat likely, 15% 

No, it is somewhat unlikely, 30% 

No, it is very unlikely, 48% 

We have confirmed we are closing, 0% 

We are already closed, 1% 

 

As far as you are aware, are any of the families attending your group facing any of the following challenges?  

Difficulties meeting the cost of food, 39% 

Difficulties meeting the cost of their rent or mortgage, 35% 

Difficulties meeting the cost of rising energy prices, 52% 

Difficulties meeting the cost of childcare and early education, 43% 

Insecure or unstable housing situation, 23% 

Difficulties finding employment, 21% 

Mental health and wellbeing difficulties, 53% 

Not aware of any challenges, 29% 

Other, 6% 

 

What support, if any, has your baby and toddler group offered to families struggling with the rising cost of living? 

Signposted them to relevant services, 51% 

Donated toys/book/other resources, 25% 

Reduced cost of attending sessions, 26% 

Budget support (for example, by offering them budgeting guidance), 7% 

Providing a warm space during the winter, 47% 

Visits from other organisations, 11% 

Behaviour guidance, 11% 

Community Cafés, 14% 

Health visitor drop-ins, 5% 

Speech and language support, 10% 

Baby and toddler development guidance, 25% 

N/A – not aware of any families attending the group who have needed support with the cost-of-living, 23% 

Other (please specify), 11% 

 

Which, if any, of the following changes have you observed in the children attending your group compared to before the Covid-19 pandemic?  

Children are less comfortable interacting with other children at the group, 34% 

Children are less comfortable interacting with adults at the group, 22% 

A greater number of children have speech and language delays, 39% 

Children find it more difficult to share, 38% 

There are more behavioural challenges (e.g. children hitting), 25% 

Not sure, 17% 

N/A-the group wasn't open pre-pandemic, 15% 

Other, 9% 

 

Is your baby and toddler group able to offer as much support to families as you would like? 

Yes, 53% 

No, 47%