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FITNESS, HEALTH, WELLNESS

press release: ukactive

ukactive calls on Government to help drive growth as gyms, pools and leisure centres report continued pressure from energy costs

02 May 2024
Nearly a quarter of council areas remain at risk of seeing their leisure centres close or reduce services by September / Shutterstock.com / qoppi

  • Latest survey of ukactive members reveals ongoing operating pressures facing physical activity sector due to high energy costs.

  • Almost a quarter (24%) of council areas are at risk of losing their leisure centre(s) or seeing reduced services at their leisure centre(s) before September.

  • 5% of private operators surveyed have closed some or all their sites since October 2023.

  • ukactive sets out key areas for support as it urges Government to help more people access these essential facilities.



A survey of ukactive members has revealed that nearly a quarter (24%) of council areas remain at risk of seeing their leisure centres close or reduce services by September, due to ongoing high energy costs and other operational pressures.

ukactive’s energy risk survey* received responses from public sector operators across 143 council areas in the UK and from private sector operators representing a total of 579 sites.

It found that 62.5% of fitness facilities run by private sector operators are extremely likely to have to increase customer pricing in the next six months to help cope with high operating costs, with 75% having already been forced to raise prices since October 2023. Continued price increases would not be a sustainable solution for businesses or for consumers.

While energy prices have stabilised to a degree, they remain substantially higher than before the energy crisis and in some cases, gyms, pools, and leisure centres have seen bills rise by more than 200%.

To respond to these pressures, publicly operated facilities in 15% of council areas have introduced changes to their financial or operational models to protect against the impact of further energy price rises.

The current geopolitical situation on energy costs, increased staffing costs and the impact of the cost-of-living crisis were all listed as areas of serious, ongoing concern by operators.

Support for some public sector operators came in the form of Sport England’s Swimming Pool Support Fund, announced in March last year. However, demand greatly outstripped supply, with less than 50% of applicants being successful in phase one. Many other providers, such as those in the private sector, those without pools, and operators outside of England were not eligible.

Phase two of the fund provided £60m of grants to boost operators’ energy efficiency and ukactive’s Sustainable Futures programme is helping to support the sector’s transition to net zero, however, the immediate pressures remain.

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.

In August 2023, 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 reduce services, change operating models, or close some of their sites, as well as ongoing uncertainty given the wider geopolitical situation, ukactive is calling for the Government to recognise growing public demand and help more people to access these essential services.

Huw Edwards, CEO of ukactive, said: “By most measures, the health of our nation is clearly deteriorating, and we have never needed these essential facilities more.

“The Government has set out its ambitions to get millions of people more active and we have seen clear demand from consumers to do this.

“However, persistently high energy costs and other growing pressures are placing gyms, pools, and leisure centres in extreme difficulty, being left to balance the needs of the community with smaller budgets.

“Operators are doing everything they can to avoid passing these costs onto customers, but now is the time for the Government to help drive greater numbers to these facilities as part of its strategy for a healthier, more active nation.”

Three key areas for Government action:

  1. Publishing the strategic Vision for Facilities referenced in the Get Active strategy to provide long-term security for gyms, pools, and leisure centres, particularly in the public sector.

  2. Reduce operating cost pressures through reform of the tax system, including full reform of the business rates system, a permanent reduction in VAT for facilities, and the introduction of ukactive’s proposed Workout from Work scheme.

  3. Drive participation to help tackle our growing health crisis and back the work ukactive is leading with other industry partners to integrate our members’ services into the NHS and to incentivise greater participation overall, in line with its own ambitions within the Get Active strategy.



*The survey, conducted in February, 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 30 September 2024

Amber – Unsecure: at risk of reduced services up to 30 September 2024

Green – Secure: no risk of closure and/or reduced services up to 30 September 2024

More press releases and updates from ukactive:
As the General Election gets underway, ukactive is ramping up its engagement on all fronts. In the first blog of our new GE24 series, ukactive Director of Research, Policy and Communications, Clemency Lion reflects on the first week of the campaign trail and picks out some key areas of interest.   
In the run up to the General Election, ukactive, as part of the Community Rehabilitation Alliance (CRA), has signed a letter calling for the Government to invest in and commission quality rehabilitation services.
ukactive has issued the following statement after the Prime Minister called a General Election for 4 July 2024.
The partners involved in the Opening School Facilities (OSF) initiative have been celebrating its success after it reached more than 168,000 children and young people, and more than 50,000 local residents, during its second year.
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The first annual Private Sector Benchmarking report was released today (27 March). A collaboration between UK Active and 4Global, the aim of the research is to provide accurate insight into the state of UK-based private sector health clubs.
In a soft power exercise, politicians in the UK have been invited to take part in a challenge which encourages them to be more active, while raising awareness of the benefits of physical activity.
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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: ukactive calls on Government to help drive growth as gyms, pools and leisure centres report continued pressure from energy costs
A survey of ukactive members has revealed that nearly a quarter (24%) of council areas remain at risk of seeing their leisure centres close or reduce services by September, due to ongoing high energy costs and other operational pressures.
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press release: ukactive

ukactive calls on Government to help drive growth as gyms, pools and leisure centres report continued pressure from energy costs

02 May 2024
Nearly a quarter of council areas remain at risk of seeing their leisure centres close or reduce services by September / Shutterstock.com / qoppi

  • Latest survey of ukactive members reveals ongoing operating pressures facing physical activity sector due to high energy costs.

  • Almost a quarter (24%) of council areas are at risk of losing their leisure centre(s) or seeing reduced services at their leisure centre(s) before September.

  • 5% of private operators surveyed have closed some or all their sites since October 2023.

  • ukactive sets out key areas for support as it urges Government to help more people access these essential facilities.



A survey of ukactive members has revealed that nearly a quarter (24%) of council areas remain at risk of seeing their leisure centres close or reduce services by September, due to ongoing high energy costs and other operational pressures.

ukactive’s energy risk survey* received responses from public sector operators across 143 council areas in the UK and from private sector operators representing a total of 579 sites.

It found that 62.5% of fitness facilities run by private sector operators are extremely likely to have to increase customer pricing in the next six months to help cope with high operating costs, with 75% having already been forced to raise prices since October 2023. Continued price increases would not be a sustainable solution for businesses or for consumers.

While energy prices have stabilised to a degree, they remain substantially higher than before the energy crisis and in some cases, gyms, pools, and leisure centres have seen bills rise by more than 200%.

To respond to these pressures, publicly operated facilities in 15% of council areas have introduced changes to their financial or operational models to protect against the impact of further energy price rises.

The current geopolitical situation on energy costs, increased staffing costs and the impact of the cost-of-living crisis were all listed as areas of serious, ongoing concern by operators.

Support for some public sector operators came in the form of Sport England’s Swimming Pool Support Fund, announced in March last year. However, demand greatly outstripped supply, with less than 50% of applicants being successful in phase one. Many other providers, such as those in the private sector, those without pools, and operators outside of England were not eligible.

Phase two of the fund provided £60m of grants to boost operators’ energy efficiency and ukactive’s Sustainable Futures programme is helping to support the sector’s transition to net zero, however, the immediate pressures remain.

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.

In August 2023, 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 reduce services, change operating models, or close some of their sites, as well as ongoing uncertainty given the wider geopolitical situation, ukactive is calling for the Government to recognise growing public demand and help more people to access these essential services.

Huw Edwards, CEO of ukactive, said: “By most measures, the health of our nation is clearly deteriorating, and we have never needed these essential facilities more.

“The Government has set out its ambitions to get millions of people more active and we have seen clear demand from consumers to do this.

“However, persistently high energy costs and other growing pressures are placing gyms, pools, and leisure centres in extreme difficulty, being left to balance the needs of the community with smaller budgets.

“Operators are doing everything they can to avoid passing these costs onto customers, but now is the time for the Government to help drive greater numbers to these facilities as part of its strategy for a healthier, more active nation.”

Three key areas for Government action:

  1. Publishing the strategic Vision for Facilities referenced in the Get Active strategy to provide long-term security for gyms, pools, and leisure centres, particularly in the public sector.

  2. Reduce operating cost pressures through reform of the tax system, including full reform of the business rates system, a permanent reduction in VAT for facilities, and the introduction of ukactive’s proposed Workout from Work scheme.

  3. Drive participation to help tackle our growing health crisis and back the work ukactive is leading with other industry partners to integrate our members’ services into the NHS and to incentivise greater participation overall, in line with its own ambitions within the Get Active strategy.



*The survey, conducted in February, 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 30 September 2024

Amber – Unsecure: at risk of reduced services up to 30 September 2024

Green – Secure: no risk of closure and/or reduced services up to 30 September 2024

More press releases and updates from ukactive:
As the General Election gets underway, ukactive is ramping up its engagement on all fronts. In the first blog of our new GE24 series, ukactive Director of Research, Policy and Communications, Clemency Lion reflects on the first week of the campaign trail and picks out some key areas of interest.   
In the run up to the General Election, ukactive, as part of the Community Rehabilitation Alliance (CRA), has signed a letter calling for the Government to invest in and commission quality rehabilitation services.
ukactive has issued the following statement after the Prime Minister called a General Election for 4 July 2024.
The partners involved in the Opening School Facilities (OSF) initiative have been celebrating its success after it reached more than 168,000 children and young people, and more than 50,000 local residents, during its second year.
ukactive is calling for the Government to tap into growing consumer demand for gyms and leisure centres as it publishes its first Consumer Engagement report, revealing major opportunities to improve health and wellbeing across the UK.
ukactive: news from HCMmag.com and FitTechGlobal.com
Improving physical strength and fitness, mental health and confidence are the main reasons for joining a health club, while cost, time and motivation are the main reasons for leaving.
UK Active has announced details of its annual health and fitness industry awards ceremony, which will take place in Birmingham on the evening of Thursday 3 October at the International Convention Centre.
The first annual Private Sector Benchmarking report was released today (27 March). A collaboration between UK Active and 4Global, the aim of the research is to provide accurate insight into the state of UK-based private sector health clubs.
In a soft power exercise, politicians in the UK have been invited to take part in a challenge which encourages them to be more active, while raising awareness of the benefits of physical activity.
Mike Farrar, chair of UK Active, has called on the UK government to deploy the physical activity sector to support the NHS and tackle the UK’s pandemic of poor health and sluggish economy.
ukactive: featured in HCM and Fit Tech magazines
Insight: All welcome
As more trans women, trans men and non-binary people join health clubs, it’s time to work out a system where everyone feels included, protected and safe in the locker room. Kath Hudson reports
Life lessons: Huw Edwards
Remember when there was mass hostility about London hosting the 2012 Olympics? Huw Edwards, CEO of UK Active, was there. He talks to Kath Hudson about the lessons he learned
Consumer expectations are rising all the time, but nowhere more than in relation to digital. UK Active’s Dave Gerrish explains how the industry is shaping up
Kath Hudson talks to industry experts from around the world about their key takeaways from last year and their hopes for 2024
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
ukactive
Tel: 020 8158 9700
Address: The Bloomsbury Building, 10 Bloomsbury Way, London, WC1A 2SL, United Kingdom
Huw Edwards, CEO
ukactive video gallery:
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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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