My mum's been trying to teach me to knit since I was 7 (i'm nearly 32 now) and I can still only plain knit and in rows lol I'm useless but my mum's made all my kids cardis, hats, booties etc when they were babies and now she knits beautiful clothes for my daughter's dolls and she made all of her grandkids a knitted teddy earlier on it the year.
We're quite lucky in chesterfield as they sell wool on our market and we have 2 wool shops (I KNOW HOW EXCITING) but Wilkos sell limited colours of wool and ebay sells it too.
If you get stuck, I can recommend the services of the lovely Aneeta who runs a knitting help service (she's a teacher and published author!). It's not confined to London, she sends SOS help all over the world via email:
I've just recently learned to knit and I already have a long list of toys & accessories I'm planning to make....assuming I don't get too stuck and give up! I don't really know where to buy decent quality yarn cheaply but I can recommend Ravelry as a great knitting forum with lots of nice free patterns, if that helps!