Appendix 1
Fees & Charges proposal
Pricing From:
Core pricing: Price Increase from February 2025 to 31st December 2025
Background
As we approach the end of 2024, we would like to begin preparations for the annual review of fees and charges, with all core pricing from February 2025.
Historically, our approach has been to review the contractual pricing terms and adjust fees based on the Consumer Price Index (CPI) percentage, as outlined in the agreement. However, in recent years, we have adopted a more flexible approach to pricing to better account for macroeconomic conditions, particularly the significant rise in energy and workforce costs.
We have been actively engaged in discussions with you to ensure that customer pricing reflects the inflationary pressures and market forces that are beyond our control. This departure from the traditional pricing model allows us to respond more effectively to changing circumstances.
To maintain this transparency, we will continue to highlight any exceptional macroeconomic pressures that may impact our operations and pricing.
Increased People Costs
We are a people-led organisation. Our purpose to improve lives through leisure is predicated on our colleagues supporting local communities to improve their physical, mental and social wellbeing. We invest heavily in our workforce, employing over 400 people; our people costs are our single biggest cost, representing over 55% of our cost base. Despite the current low CPI inflation rate of 1.7% in November, high wage growth continues above 5% (Fig. 1) and has been as high as 8% in the last year - which more accurately reflects our internal increased people costs we have absorbed. With a further projected 6.7% increase for over 21s,16.3% for 18-20-year Olds and 18% for 16-17-year olds, in National Living Wage in April 2025 (Fig. 2), and a forecast 3% increase due to the recent budget announcement to increase National Insurance, we need to reflect our rising cost base in customer pricing.
Figure 1: Wage Growth Jan 2023 – July 2023 Source ONS
Figure 2: Actual and projected National Living Wage rates, 2019-2025
Increased Energy Costs
The second largest cost item we face are energy costs, and whilst we have worked hard in recent years to significantly reduce our energy consumption, we must continue to acknowledge that due to much higher market rates, our energy costs have more than doubled in recent years, with energy costs now representing nearly 15% of our overall cost base.
Pricing Approach
Based on the above factors, and in spite of continued efforts exploring new income streams and cost saving measures, the current contractual annual CPI% pricing approach will not mitigate against the cost pressures.
There is a strong case present for above-contractual increases due to the significant wage inflation pressures on our people-led services leading to a deterioration in current customer service and experience levels. Following will be a templated document that outlines our fees & charges increase proposal.
Equality Impact: We will offer a full concessionary program providing equality, diversity and cohesion.
We will continue to offer the current concessionary rates as set out below:
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Eligibility Criteria |
Advance 25 - up to 25 % reduction on fees and charges (Memberships and Pay as you go)
Juniors (under 18), Individuals in receipt of State Pension, Full-Time Students.
Teen Active and Senior Active.
Senior Membership.
Concessionary.
Under 25's on the following: Modern Apprenticeships, NVQ Training Schemes and Life Skills Training.
Corporate Membership.
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Advance 50 - up to 50 % reduction on fees and charges (Pay as you go only)
Carer's Allowance, Child Tax Credit, Council Tax Benefit (not discount schemes), Employment & Support Allowance, Foster Carers and Children, Housing Benefit, Income Support, Jobseekers Allowance, Pension Guaranteed Credits, Working Tax Credit, kindship carers, care leavers, looked after children and independent looked after children. |
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- Lymington Health & Leisure - New Milton Health & Leisure - Applemore Health & Leisure - Ringwood Health & Leisure - Totton Health & Leisure |
The negative impacts if FL New Forest were unsuccessful with the price rises application
· Employment would be reduced causing an impact to the Teams social value
· Current customer service and experience levels
· Forward membership growth and retention plan
· Capital Projects and investment
· Joint projects with the partners (School)
· Retention plans to introduce reward schemes (creating more motivation around members staying with us)
· Reduced time table and programme across all sites in group exercise, swimming and LTS.
· Our Gym experience enhancement aimed
· Impact to social value and our delivery of Healthy Communities programs
· Environmental Net Zero strategy and current plans may not be delivered
· Repair and maintenance work not completed
· Our New Forest wider Brand reputation would be harmed moving forward
· Current recovery deficit - surplus
· Impact on the health and wellbeing of the New Forest population
· Impact on the organization’s actions in the community and environment
· Impact on the health and wellbeing of the New Forest diverse population
Core Pricing – Increase effective February 2025
· Average % increase across all Direct Debit Memberships is 6.1%.
· The highest monthly % increase is student DD, which is an increase of £3.50.
· The lowest increase is the corporate membership 3.1%, which is an increase of £1.40.
Annual Membership
The below annual membership prices are the cost of 11 single payments of the above monthly direct debit membership price.
Swimming Activities
· Average % increase across all Swimming Activities is 7.2%.
· The highest % increase is concessionary junior swim at 8.3%, which is an increase of £0.25.
· The lowest percentage increase is the member junior swim at 7.1% which is an increase of £0.25.
Clubs & private hire
· Average % increase across all club and private hire in this section is 7.2%.
· Swimming lessons that are cancelled will be equal to the total membership base at the time of the event. The hirer will be charged to that value.
· The lifeguard hourly rate will be based on the national living wage as on costs, at the time of this event.
Unsupervised Activities (Badminton, Main hall, fitness suite etc)
· Average % increase across all Unsupervised Activities is 7.6%.
· The highest % increase is holiday courtx2 court hire 8.00%, which is an increase of £0.60.
· The lowest percentage increase is a Badminton Court 7.41%, which is an increase of £0.65.
Supervised activities (includes Active Lifestyles request not above October CPI)
· Average % increase across all Supervised Activities is 7.6%.
· The highest % increase is 17.6 % Sauna Steam and Swim AHL (Member, None Member, Special and Standard)
· The lowest percentage increase is 1.51% Active Lifestyles activity morning, which is an increase of £0.04.
Children’s parties
· Exclusive 1 Hour session.
· 60 Minute use of a studio for cake at an additional charge.
· Food is provided at an additional charge.
All weather pitch (AWP)
· Average % increase across all AWP is 7.6%.
· The highest % individual court hire at 8.03%, which is an increase of £3.20.
· The lowest increase is court junior rate 6.38%, which is an increase of £1.50
Major Event Competitions will remain as negotiated between the operator and the hirer.
Colleague Memberships
A colleague membership is available to all Freedom Leisure Employees, providing employees with access to our gyms, group exercise classes and swimming pools. Employees also benefit from discounts of 50% for swimming lessons which include family members.
Appendix A – Competitor Analysis
