Play.com are offering up some great discounts on toys, they've got 22 gift ideas for those 2 and under an they're all £5:

Play.com - Buy Tomy: Hide N Squeak Eggs online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Crayola: Tadoodles in the Tub - Washable Bath Crayons online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Ravensburger: Bob The Builder 8 Piece Wooden Playtray online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Vtech: Toot Toot Drivers Fire Engine online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Crayola: Tadoodles Washable First Markers online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Vtech: Toot Toot Drivers Police Car online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Orchard Toys: Jungle Puzzles online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Orchard Toys: Transport Puzzles online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Alex: Colour Changing Ducks (3) online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Vtech: Toot Toot Drivers Car online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Crayola: Disney Princess Colour Wonder Pens And Pad online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy LEGO DUPLO LEGOVille: Little Piggy online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Vtech: Toot Toot Drivers Lorry online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Orchard Toys: Under the Sea Puzzles online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Orchard Toys: Pets Puzzles online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Vtech: Toot Toot Drivers Van online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Vtech: Toot Toot Drivers Ambulance online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Block Crayons: Farm 7 Piece Set online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Orchard Toys: In My House Puzzles online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Viking Toys: Maxi Tractor & Trailer 31 cm in Box online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy Crayola: Stick-A-Pic online at Play.com and read reviews. Free delivery to UK and Europe!
Play.com - Buy In The Night Garden: Character Wrist Rattle online at Play.com and read reviews. Free delivery to UK and Europe!

I'm pretty terrible at buying for my niece and nephew but hopefully I can grab a bargain for them this Christmas as I have no real idea so figure it's better to get a few cheap discount toys and hope they like one of them!