Microsoft is changing its licences for schools. Here is what it means for yours

What is changing

A new set of editions. Microsoft is replacing its current line-up with five editions: A0, A2, A3, A5 and A7. A0 is for pupils only. The others come in a staff version and a pupil version. Microsoft calls staff "faculty" in its documents.

• A0 is a free pupil licence. It gives pupils the Office apps on the desktop and the web, and Minecraft Education. It does not include email, SharePoint or Teams.
• A2 is the new lowest paid edition. It goes on sale on 1 December 2026.
• A3 and A5 continue, updated. The new versions go on sale on 1 January 2028.
• A7 is a new top edition. It went on sale on 1 October 2026.

Some free licences are ending. On 1 January 2028:

• Office 365 A1, the free edition many schools use for staff and pupils, comes to an end. It stops being sold through partners on 1 May 2027 (and has already stopped being sold directly from Microsoft's website).
• The Student Use Benefit, the free pupil licences that come with paid staff licences, ends for every way of buying.
• Free mailboxes for former pupils (Exchange Online for Alumni) end. A paid version will be available instead.

Storage is worked out differently. Today every school gets a large shared allowance of 100 TB before anything else is counted. That base allowance goes. Instead, your school's shared pool will be the total of what each licence adds: for example 4 GB for each A2 pupil and 50 GB for each A2 member of staff, up to 12 GB and 150 GB on A5 and A7. The free A0 adds nothing. For many schools the new pool will be smaller than today's. Extra storage can be bought in 10 TB packs.

Some licences gain new features. Every paid edition, for staff and pupils, will include Copilot Chat, Microsoft's AI chat tool, for eligible users, and a new Microsoft Classroom. The updated A3 staff licence adds email threat protection (Microsoft Defender for Office 365 Plan 1). The updated A5 staff licence adds more tools for managing school devices.

You can mix and match. Editions can be chosen person by person, and versions without Teams will be available. Some features only work inside Teams, so check what you would lose first.

Pricing. If you buy through Academic Volume Licensing (an EES, OVS-ES or School agreement), online services will have one price whatever your price level. Microsoft says list prices for existing staff suites with Teams will not change, but what you actually pay may change, depending on how you buy and your mix of licences. It has not published the new prices, and says renewing early to avoid the changes is not allowed.

When it affects your school

The key is your renewal date, not the date on the calendar.

• Pricing changes from your first renewal or extension on or after 1 May 2027.
• The new editions, the new storage rules and the end of the free offers apply from your first renewal or extension on or after 1 January 2028.

So a school that renews every September will see the pricing change in September 2027 and the storage change in September 2028. A school part way through a three-year agreement keeps its current arrangements until that agreement ends. If you are not sure when you renew, ask whoever sells you your licences, usually your IT provider.

One point to check carefully: Microsoft says a school whose agreement began before a cut-off date can keep using Office 365 A1 until that agreement ends, but its own pages give two different cut-off dates. Ask your partner which applies to you rather than assuming.

Who needs to act

You need to plan now if any of these apply to you:

• Anyone on Office 365 A1. Staff will need a paid edition. Pupils can move to a paid edition or to the free A0.
• Pupils on the Student Use Benefit. They will need a new student licence.
• Former pupils with a free mailbox. Decide whether you need to keep these at all.

Can your pupils have the free A0? Only if every paid member of staff is on A2 or higher, and only for pupils who use Windows devices for their learning. Microsoft says a school can have up to 20 A0 pupil licences for each paid staff licence. Bear in mind A0 has no email or Teams, so it will not suit every pupil.

What to do before your renewal

1. Find your renewal date and put it in the diary with a reminder three months before.
2. Count your licences. How many staff and pupils are on each edition, and how many are on A1, the Student Use Benefit or a former-pupil mailbox. Your IT provider can read these from the Microsoft 365 admin centre.
3. Check your storage. Find out how much you use now and compare it with what your licences will give you. Tidy up what you no longer need to keep.
4. Ask for a quote early. Ask your Microsoft partner what they recommend for each group of staff and pupils, and what it will cost, well before your renewal.
5. Decide your approach to Copilot Chat before it reaches pupils, write it into your AI use policy, and check your data protection impact assessment covers it.
6. Write it down. Record your licences, numbers and renewal date in your register of systems. The DfE digital and technology standards expect schools to keep software licensed and up to date and to keep registers of what they use.

Work out what it means for you in five minutes

We have built a free check in Digital Confidence. Enter your licence numbers, how you buy and your renewal date, and it tells you which changes apply to you and when, who needs a new licence, whether the free A0 is open to you, and what happens to your storage. It links each result to the DfE digital and technology standards, and you do not need an account to use it.

Check what the Microsoft 365 changes mean for your school

Based on Microsoft's announcement of 5 November 2026, checked on 5 November 2026. Microsoft has not yet published prices. Confirm anything you act on with your Microsoft partner.