Pass sorry! you asked about prizes. As I had so few, I spent a bit more. For pass the parcel I usually just do sweets with one prize in the middle. Thus time I put a pack of 8 colour in Christmas cards (Tesco £1) in each layer. The prize was a little backpack style bag I bought from the Christmas thread for about £1.
In the party bags I put a bag of mini milky bar buttons, 2 packs of maoam chews, a diamanté tiara from the £1 shop. A bottle of frozen bubbles from the works, 2 for £1. I also bought an Asda multi pack of party favours that I think was about £4 containing 6 of each of the following: mini note book, poppa point pencil, rubber and highlighter, then I added for the 3 little girls, a fake mini my little pony toy that my sister gave me a load of plus for the big girls a mini football key ring game, that were also in sisters bag and they all got a super bouncy ball from sisters magic bag. Then they also got a frozen sticker book £2 each in the works.
So each bag was about £4.50 when I would normally spend about £2.50, but there were only 6 of them, so less than £30.
For games we did some musical statues, musical bumps, (no prizes as much easier for the big ones,) pass the parcel, tea, then I face painted them.