In case anyone is still wondering, NYFTE is the National Youth Folk Troupe of England, a very talented bunch of kids from all over the UK who meet up for workshop type weekends throughout the year, and perform at festivals. Whilst they are very good, I don't think they take kids as young as 7, though I may be wrong, and I think the kids already have to be quite heavily into the folk scene and with proven ability in music,dance etc, which doesn't sound like what we want for this case.

The Hobbyhorse Club of England used to appear at festivals a few years ago though I haven't seen them recently. They were good at introducing young kids to the folk scene, although my two found their approach a bit old fashioned 10 years ago, so unless they've changed (assuming they still exist) they may not exactly help either. I agree that Whitby is a good festival for kids, although not as good as it was, but I think a lot of places are falling foul of the new stringent legislation with regard to child care.