Cognus, Sutton Council's education services company, is facing a £410,000 deficit due to increasing demand for Education, Health and Care Plans (EHCPs). The Sutton Shareholdings Board met on 4 November 2025 to discuss Cognus's mid-year performance and finances.

The deficit, reported for the financial year ending 31 March 2025, is £247,000 higher than the previous year, according to the Public reports pack. This is largely attributed to additional statutory expenditure of £739,000 for the Therapies team, which is linked to the rising number of EHCPs in the borough.

Despite the deficit, the report pack states that Cognus' trading performance has grown annually since 2019.

To address the financial challenges, Cognus is working in partnership with the council to meet the demands of SEND services while mitigating the financial risk through delivery of the SEND transformation programme. Specific examples of the work within the SEND transformation programme include:

  • The launch of a revised ordinarily available provision guidance which has been co-produced with schools to promote consistent approach to early intervention for emerging and additional needs as well as high quality inclusive education.
  • The launch of the SEND support advisory partnership which introduces all schools to the opportunity to offer multi-agency advice and support for schools and settings at SEND support level getting in early and eradicating the need at an early stage to apply for an EHCP plan until those options have been exhausted.

The Public reports pack also states that the financial impact of the high demand for these services was shared between the company and the council.

Jo Cassie, Managing Director at Cognus Limited, reported on the company's progress against its business plan objectives for the last year. Bradley Clayton, a non-executive director on the Cognus board, provided an update on the company's financial performance.

According to the Cognus Mid-Year Performance and Finances Report, the SEND Service is currently overseeing 2582 EHCPs, a 12.1% increase on the previous year. The report also states that 76.5% of new EHCPs were issued within 20 weeks, compared to 46.4% nationally.

The Sutton Shareholdings Board will be provided with a finance report, which confirms the 2024/25 operating deficit reported in the accounts was £411,000. The report pack states that Cognus are working in partnership with the council to meet the demands whilst mitigating the financial risk through delivery of the SEND transformation programme.