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press release: ukactive

Health and fitness services remain at risk as gyms, swimming pools and leisure facilities report ongoing energy cost pressures

20 Nov 2023
The rising cost of energy has increased some operators bills by more than 200% / Shutterstock / Yulia YasPe

  • The latest survey of ukactive’s members reveals the ongoing pressures of high energy costs on the physical activity sector.

  • 2 in 5 (38.5%) publicly operated leisure facilities say they are at risk of reducing services (such as opening times, pool temperatures or classes) – and some of closing entirely – by March, due to high energy costs.

  • Nearly one in five (18.8%) private operators from the sample have closed some or all their sites since October 2022.

  • ukactive sets out key areas for Government support.



Nearly 40% (2 in 5) of leisure centres and other publicly operated fitness facilities are considering reducing services or closing sites entirely by March, due to ongoing high energy costs.

ukactive’s energy risk survey* received responses from public sector operators across 164 council areas in the UK and from private sector operators representing a total of 801 sites.

It found that three quarters (75%) of private facilities are extremely likely to have to increase their customer pricing in the next six months, with 87.5% having already been forced to raise prices over the past year to cope with high operating costs. Continued price increases would not be a sustainable solution for businesses or for consumers.

In some cases, the rising cost of energy has increased operators bills by more than 200%.

Nearly half (43.8%) of the privately owned facilities that responded said they will be forced to consider making redundancies within the next six months. Half (50%) of the respondents said they have already reduced their staff numbers within the 12 months prior to September 2023.

Government support has been provided in the form of an Energy Bill Discount Scheme that was announced in April this year. However, only 9.6% of public sector respondents that received support said the scheme had made a significant impact in improving the risk rating for their facility.

Support for some public sector operators came in the form of the Swimming Pool Support Fund announced in March, however, demand has greatly outstripped supply, with less than 50% of applicants successful. Many other providers, such as those in the private sector and those without pools, were not eligible.

In August, the Government announced its ‘Get Active’ strategy for sport and physical activity, which laid out ambitious targets to get 3.5 million more people active by 2030.

Yet, with continued financial pressures forcing operators to make staff cuts, reduce essential services such as swimming classes and health programmes, or even close permanently, the survey findings highlight the ongoing risk to the sector and, consequently, the nation’s health and wellbeing.

Closures have been reported across the regions, with local communities rallying to call on MPs and the Government to do more to support local authorities and local businesses.

ukactive has shared its findings with the Government and has set out its asks in a letter to the Chancellor and a full submission ahead of next week’s Autumn Statement.

Huw Edwards, CEO of ukactive, said: “The Government’s ambition to get millions more people active can only be achieved if continued business support is provided to gyms, pools, and leisure facilities, alongside detailed plans to drive growth in the use of services.

“Our nation’s gyms, pools and leisure centres represent the engine room of physical activity in the UK, but our survey shows that many services remain under threat from high energy costs.

“Operators are doing everything to avoid passing these costs onto customers, but continuing pressure means service reductions, price rises, and redundancies are highly likely, which will only exacerbate health inequalities.

“If we do not ensure the survival and growth of these facilities with targeted measures, it will have serious implications for the nation’s health, the NHS, and the economy in terms of workforce illness.”

Three key areas for Government investment:
  1. Accelerate the delivery of Phase 2 of the Swimming Pool Support Fund, which will support public leisure operators to deliver greater energy efficiency within their facilities.

  2. Reduce operating cost pressures in the next two fiscal announcements and help stabilise the sector through the Autumn Statement this month and the Budget in March. This should include continuing the business rates support next year – with a freeze on the business rates multiplier and extension of the relief for a further year, at 75%.

  3. Drive participation to help tackle our growing health crisis, with rising obesity levels, nearly 8 million people on NHS waiting lists and long-term sickness from work at record levels. The Government should back the work ukactive is leading with other industry partners to integrate our members’ services into the NHS and to incentivise greater participation overall.



*The survey, conducted in September, asked operators a series of questions, including grading their risk of service restrictions (such as reduced opening times, pool temperatures, classes) or risk of closures, based on the following categories:

Red – Unsecure: at risk of closure up to 31 March 2024

Amber – Unsecure: at risk of reduced services up to 31 March 2024

Green – Secure: no risk of closure and/or reduced services up to 31 March 2024

More press releases and updates from ukactive:
Fitness and leisure organisations that make continued investment in digital transformation are moving ahead of the competition, according to findings released today in the third annual Digital Futures report from ukactive and Sport England.
ukactive has today (28 November) announced the launch of Sustainable Futures, a programme designed to support the physical activity sector’s transition to net zero.
The National Sector Partners Group (NSPG) cautiously welcomes the Chancellor’s announcements at yesterday’s Autumn Statement, which seeks to prioritise the country’s economic growth.
At this time of year, the political developments are coming thick and fast.
ukactive has announced the launch of its Equality, Diversity and Inclusion (EDI) self- assessment tool to support its members to improve services for all users.
ukactive: news from HCMmag.com and FitTechGlobal.com
Equality, Diversity and Inclusion (EDI) is everyone’s responsibility, especially given the industry’s ambition to broaden its reach and benefit more people. To this end, UK Active is inviting operators to engage with its new inclusion self-assessment tool.
The top operators, suppliers and facilities from across the physical activity sector were celebrated last night (26 October), as the winners of the prestigious ukactive Awards 2023 were announced at the Royal Armouries in Leeds.
A survey of UK adults by market research outfit Savanta has identified the nation’s dream workout buddies, with actors, sports stars, musicians and TV presenters ranking alongside real life partners.
Improved mental health is now a stronger motivation for Brits to exercise than staying in shape.
Parkwood Leisure, in partnership with its subsidiary companies Legacy Leisure and Lex Leisure, has launched two rehabilitation programmes across 24 leisure centres in England and Wales.
Jack Shakespeare, UK Active's director of research, policy and communications, is leaving the organisation to join UK-based data, services and software company 4Global as its director of strategic projects.
ukactive: featured in HCM and Fit Tech magazines
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Time are tough but tough times bring out the best in us. Kath Hudson asks some of the world’s top industry experts where they see the glimpses of blue sky
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The author, industry veteran, UK Active board member and founder and CEO of Mosaic Spa and Health Clubs talks to Kath Hudson about the challenges of operating a high-end club when low-cost came on the scene
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Harnessing the healthcare network to further the fitness sector’s ambitions is the core purpose of UK Active’s new chair, as he explains to Kate Cracknell
Fuel the debate about issues across the industry and share your best practice. We’d love to hear from you – [email protected]
Whether you’re a digital experimenter or a digital leader, 2023 will be a pivotal year in the sector’s tech transformation journey say David Gerrish and Jon Reay
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ukactive
Tel: 020 8158 9700
Address: The Bloomsbury Building, 10 Bloomsbury Way, London, WC1A 2SL, United Kingdom
Huw Edwards, CEO
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ukactive press release: Health and fitness services remain at risk as gyms, swimming pools and leisure facilities report ongoing energy cost pressures
The latest survey of ukactive’s members reveals the ongoing pressures of high energy costs on the physical activity sector.
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press release: ukactive

Health and fitness services remain at risk as gyms, swimming pools and leisure facilities report ongoing energy cost pressures

20 Nov 2023
The rising cost of energy has increased some operators bills by more than 200% / Shutterstock / Yulia YasPe

  • The latest survey of ukactive’s members reveals the ongoing pressures of high energy costs on the physical activity sector.

  • 2 in 5 (38.5%) publicly operated leisure facilities say they are at risk of reducing services (such as opening times, pool temperatures or classes) – and some of closing entirely – by March, due to high energy costs.

  • Nearly one in five (18.8%) private operators from the sample have closed some or all their sites since October 2022.

  • ukactive sets out key areas for Government support.



Nearly 40% (2 in 5) of leisure centres and other publicly operated fitness facilities are considering reducing services or closing sites entirely by March, due to ongoing high energy costs.

ukactive’s energy risk survey* received responses from public sector operators across 164 council areas in the UK and from private sector operators representing a total of 801 sites.

It found that three quarters (75%) of private facilities are extremely likely to have to increase their customer pricing in the next six months, with 87.5% having already been forced to raise prices over the past year to cope with high operating costs. Continued price increases would not be a sustainable solution for businesses or for consumers.

In some cases, the rising cost of energy has increased operators bills by more than 200%.

Nearly half (43.8%) of the privately owned facilities that responded said they will be forced to consider making redundancies within the next six months. Half (50%) of the respondents said they have already reduced their staff numbers within the 12 months prior to September 2023.

Government support has been provided in the form of an Energy Bill Discount Scheme that was announced in April this year. However, only 9.6% of public sector respondents that received support said the scheme had made a significant impact in improving the risk rating for their facility.

Support for some public sector operators came in the form of the Swimming Pool Support Fund announced in March, however, demand has greatly outstripped supply, with less than 50% of applicants successful. Many other providers, such as those in the private sector and those without pools, were not eligible.

In August, the Government announced its ‘Get Active’ strategy for sport and physical activity, which laid out ambitious targets to get 3.5 million more people active by 2030.

Yet, with continued financial pressures forcing operators to make staff cuts, reduce essential services such as swimming classes and health programmes, or even close permanently, the survey findings highlight the ongoing risk to the sector and, consequently, the nation’s health and wellbeing.

Closures have been reported across the regions, with local communities rallying to call on MPs and the Government to do more to support local authorities and local businesses.

ukactive has shared its findings with the Government and has set out its asks in a letter to the Chancellor and a full submission ahead of next week’s Autumn Statement.

Huw Edwards, CEO of ukactive, said: “The Government’s ambition to get millions more people active can only be achieved if continued business support is provided to gyms, pools, and leisure facilities, alongside detailed plans to drive growth in the use of services.

“Our nation’s gyms, pools and leisure centres represent the engine room of physical activity in the UK, but our survey shows that many services remain under threat from high energy costs.

“Operators are doing everything to avoid passing these costs onto customers, but continuing pressure means service reductions, price rises, and redundancies are highly likely, which will only exacerbate health inequalities.

“If we do not ensure the survival and growth of these facilities with targeted measures, it will have serious implications for the nation’s health, the NHS, and the economy in terms of workforce illness.”

Three key areas for Government investment:
  1. Accelerate the delivery of Phase 2 of the Swimming Pool Support Fund, which will support public leisure operators to deliver greater energy efficiency within their facilities.

  2. Reduce operating cost pressures in the next two fiscal announcements and help stabilise the sector through the Autumn Statement this month and the Budget in March. This should include continuing the business rates support next year – with a freeze on the business rates multiplier and extension of the relief for a further year, at 75%.

  3. Drive participation to help tackle our growing health crisis, with rising obesity levels, nearly 8 million people on NHS waiting lists and long-term sickness from work at record levels. The Government should back the work ukactive is leading with other industry partners to integrate our members’ services into the NHS and to incentivise greater participation overall.



*The survey, conducted in September, asked operators a series of questions, including grading their risk of service restrictions (such as reduced opening times, pool temperatures, classes) or risk of closures, based on the following categories:

Red – Unsecure: at risk of closure up to 31 March 2024

Amber – Unsecure: at risk of reduced services up to 31 March 2024

Green – Secure: no risk of closure and/or reduced services up to 31 March 2024

More press releases and updates from ukactive:
Fitness and leisure organisations that make continued investment in digital transformation are moving ahead of the competition, according to findings released today in the third annual Digital Futures report from ukactive and Sport England.
ukactive has today (28 November) announced the launch of Sustainable Futures, a programme designed to support the physical activity sector’s transition to net zero.
The National Sector Partners Group (NSPG) cautiously welcomes the Chancellor’s announcements at yesterday’s Autumn Statement, which seeks to prioritise the country’s economic growth.
At this time of year, the political developments are coming thick and fast.
ukactive has announced the launch of its Equality, Diversity and Inclusion (EDI) self- assessment tool to support its members to improve services for all users.
ukactive: news from HCMmag.com and FitTechGlobal.com
Equality, Diversity and Inclusion (EDI) is everyone’s responsibility, especially given the industry’s ambition to broaden its reach and benefit more people. To this end, UK Active is inviting operators to engage with its new inclusion self-assessment tool.
The top operators, suppliers and facilities from across the physical activity sector were celebrated last night (26 October), as the winners of the prestigious ukactive Awards 2023 were announced at the Royal Armouries in Leeds.
A survey of UK adults by market research outfit Savanta has identified the nation’s dream workout buddies, with actors, sports stars, musicians and TV presenters ranking alongside real life partners.
Improved mental health is now a stronger motivation for Brits to exercise than staying in shape.
Parkwood Leisure, in partnership with its subsidiary companies Legacy Leisure and Lex Leisure, has launched two rehabilitation programmes across 24 leisure centres in England and Wales.
Jack Shakespeare, UK Active's director of research, policy and communications, is leaving the organisation to join UK-based data, services and software company 4Global as its director of strategic projects.
ukactive: featured in HCM and Fit Tech magazines
Industry insights: Predictions
Time are tough but tough times bring out the best in us. Kath Hudson asks some of the world’s top industry experts where they see the glimpses of blue sky
Life lessons: Dave Courteen
The author, industry veteran, UK Active board member and founder and CEO of Mosaic Spa and Health Clubs talks to Kath Hudson about the challenges of operating a high-end club when low-cost came on the scene
Interview: Mike Farrar
Harnessing the healthcare network to further the fitness sector’s ambitions is the core purpose of UK Active’s new chair, as he explains to Kate Cracknell
Fuel the debate about issues across the industry and share your best practice. We’d love to hear from you – [email protected]
Whether you’re a digital experimenter or a digital leader, 2023 will be a pivotal year in the sector’s tech transformation journey say David Gerrish and Jon Reay
UK Active’s Alex Lucas explains the findings of a new report which shows how the fitness and leisure sector can help transform workforce activity levels in the new hybrid workplace
ukactive
Tel: 020 8158 9700
Address: The Bloomsbury Building, 10 Bloomsbury Way, London, WC1A 2SL, United Kingdom
Huw Edwards, CEO
ukactive video gallery:
Key personnel
Mike Farrar, Chair
Huw Edwards, CEO
Steven Scales, Director of Membership and Sector Development
Jack Shakespeare, Director of Research, Policy and Communications
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