Microsoft 365 Education licensing is changing: what UK education organisations need to know
6 minute read
Tom Connolly
November 6th, 2026
On 5 November 2026, Microsoft announced changes to its Microsoft 365 Education portfolio, covering Microsoft 365 A0, A2, A3, A5 and A7. There is a lot to take in, and the important question is what the changes mean for your organisation.
This update reflects the information available as at 5 November 2026. Some details remain subject to clarification and may change as further guidance and agreements are finalised.
We are also aware that a new Jisc Memorandum of Understanding with Microsoft is pending. We expect this to play an important role in how eligible UK institutions navigate the changes. However, until it is agreed and the terms are confirmed, we cannot say what provisions it will include or how these will affect individual institutions.
The changes affect student and faculty licensing, storage, security, AI, and how some agreements work. They will not all arrive at once.
For schools, trusts, colleges and universities, the next step is to understand the detail in the context of their agreement, renewal date and requirements. Phoenix can help you assess the options calmly, without assuming an immediate decision is needed.
What is changing in Microsoft 365 Education licensing?
The portfolio includes Microsoft 365 A0, A2, A3, A5 and A7. Student and faculty editions do not necessarily contain the same capabilities, and the offers should not be treated as a simple cumulative progression. The right fit depends on eligibility, user needs and the applicable product terms.
- Microsoft 365 A0 is a student-only offer with eligibility conditions: the institution must license all faculty users with A2 or higher; eligible students must use Windows devices for educational purposes; and a maximum of 20 A0 student licences is available per eligible paid faculty licence. It is not an unrestricted replacement for Office 365 A1.
- Microsoft 365 A2 becomes available on 1 December 2026. Assess student and faculty editions separately against the services each user group needs.
- Microsoft 365 A3 is an option to assess against productivity, device management and security requirements. Check the relevant student or faculty edition and the timing of portfolio changes from 1 January 2028.
- Microsoft 365 A5 should be assessed against the institution’s security, compliance and management requirements. Do not assume student and faculty entitlements are identical.
- Microsoft 365 A7 has been available since 1 October 2026. Assess the applicable edition against AI, security and wider organisational requirements rather than assuming it is the right choice for every user.
Important
Your agreement, renewal date, eligibility and requirements determine which options are relevant. Phoenix can help compare the applicable editions and separate confirmed information from details still awaiting clarification.
Office 365 A1 and Student Use Benefit will retire
Microsoft has announced 1 January 2028 retirement milestones for Office 365 A1 and Student Use Benefit. Office 365 A1 web-direct end of sale is 5 November 2026; partner-channel end of sale is 1 May 2027. End of sale is not retirement and does not mean existing users immediately lose access.
Existing agreements, licences, entitlements and pricing remain in effect through their current term, with relevant changes applying at renewal or extension. 1 January 2028 is not a universal service switch-off date. Future options include Microsoft 365 A0 where its conditions are met, and paid student offers; the right route depends on the institution’s requirements.
This will make user and device profiling more important. Education organisations should understand who needs which services before renewal.
Exchange Online for Alumni will retire
As of 1 January 2028, Microsoft will be retiring its free Exchange Online for Alumni offer. For anyone with an active enrolment that began before this date, you can continue to use and add free Exchange Online for Alumni licences through the current enrolment terms.
Once you reach renewal or at the end of that term, these licences cannot be renewed or extended. Because of this, institutions should plan to move affected users onto a licensing structure that works for them.
Pricing principles will change
Microsoft’s Online Services pricing level changes apply at an institution’s first renewal or extension on or after 1 May 2027. Existing pricing remains in effect through the current term. The institution’s agreement and required suite options will determine the impact.
The impact will vary by customer. Current licences, user groups, Teams requirements, and renewal dates will all shape the outcome.
Pooled storage will be reallocated
Storage remains pooled across the tenant. The planned model removes the existing 100 TB base allowance and bases entitlement on licensed users and their applicable student or faculty licences. This is part of the changes from 1 January 2028, with relevant changes applying at renewal or extension after the current term; the base allowance is not removed immediately.
Tier | Student contribution | Faculty contribution |
Microsoft 365 A0 | 0 GB | Not available |
Microsoft 365 A2 | 4 GB | 50 GB |
Microsoft 365 A3 | 8 GB | 75 GB |
Microsoft 365 A5 | 12 GB | 150 GB |
Microsoft 365 A7 | 12 GB | 150 GB |
Storage needs should be modelled alongside licensing. Existing use, growth, retention, and archive requirements may affect the right route.
OVS-ES and School Agreement changes
Microsoft has announced 1 January 2028 retirement milestones for OVS-ES and School Agreement. Existing agreements and entitlements continue through their current term, with relevant changes applying at renewal or extension. Future routes, including any CSP options and on-premises rights, need to be assessed against confirmed guidance and each customer’s requirements.
Customers using these programmes should review renewal timing and future options early. A dedicated transition plan will reduce avoidable pressure later.
What this means across UK education
Schools and Trusts
Schools and trusts will need to consider pupil devices, staff requirements, safeguarding, and affordability together.
Microsoft 365 A0 may suit eligible students using Windows devices for educational purposes, where all faculty users are licensed with A2 or higher. The limit is 20 A0 student licences per eligible paid faculty licence. It is not a universal replacement for Office 365 A1.
The security additions within higher tiers may support safer learning environments. Leaders should still map every feature to a clear need.
Further Education (FE)
Colleges often support varied learners across complex estates. A single licensing approach may no longer fit every user group.
FE teams should profile learners, staff, shared devices, specialist provision, and campus services. This will help protect access and control cost.
Higher Education
Universities should expect a larger modelling exercise. Student numbers, faculty profiles, pooled storage, research needs, and security requirements all matter.
The new AI and security capabilities may create value. Institutions should assess governance, readiness, adoption, and total cost before choosing a tier.
Key dates
Information correct as at 5 November 2026 and subject to further clarification.
- 1 October 2026: Microsoft 365 A7 availability.
- 5 November 2026: Microsoft announcement and Office 365 A1 web-direct end of sale. Existing users do not immediately lose access.
- Wednesday 11 November 2026: Phoenix and Microsoft customer webinar, 10am – 11am. Register here.
- 1 December 2026: Microsoft 365 A2 availability.
- 1 May 2027: Office 365 A1 partner-channel end of sale. Online Services pricing level changes apply at the institution’s first renewal or extension on or after this date; current-term pricing continues.
- 1 January 2028: Retirement milestones for Office 365 A1, Student Use Benefit, OVS-ES and School Agreement, alongside wider portfolio and storage changes. Existing agreements, licences, entitlements and pricing remain in effect through their current term, with relevant changes applying at renewal or extension. This is not a universal service switch-off date.
What should education organisations do now?
Begin with a clear picture of your current estate. Review users, devices, services, storage, security, and renewal dates.
Then model several routes. Compare cost, capability, user experience, and the work needed to make each route successful.
Phoenix can help with Microsoft 365 Education licence profiling, estate assessment, optimisation, readiness, and adoption. The aim is a planned transition, not a rushed response.
Why choose Phoenix?
Every education organisation will approach these changes differently. The right path will depend on users, devices, security requirements, storage needs, and long-term objectives.
Phoenix works with schools, trusts, colleges, and universities to help them assess their options, understand the potential impact, and plan ahead with confidence.
Join our customer briefings
Join Phoenix and Microsoft on Wednesday 11th November as we work through the changes as they stand, explain the confirmed timelines and discuss the questions still awaiting clarification. There will also be an opportunity to put your questions to the team.
- Microsoft 365 Education is changing: 11th November, 10am.
- Planning for the new portfolio: 26th November, 10am
- OVS-ES briefings: 9th December, 2pm
FAQs
Microsoft’s 5 November 2026 announcement covers Microsoft 365 A0, A2, A3, A5 and A7, alongside changes to student entitlements, pricing levels, storage and agreement routes. The impact depends on your institution’s agreement, renewal date, and requirements.
The changes affect licensing, storage, security, AI services, and agreement options. They will not all arrive at the same time, so organisations should review Microsoft’s timeline carefully.
The new Microsoft 365 Education tiers provide different levels of functionality depending on an organisation’s needs.
- Microsoft 365 A0 is student-only. All faculty users must be licensed with A2 or higher, eligible students must use Windows devices for educational purposes, and the maximum is 20 A0 student licences per eligible paid faculty licence. It is not an unrestricted Office 365 A1 replacement.
- Microsoft 365 A2 becomes available on 1 December 2026. Assess the relevant student or faculty edition against user requirements.
- Microsoft 365 A3 should be assessed against productivity, device management and security requirements, using the applicable edition’s terms.
- Microsoft 365 A5 should be assessed against security, compliance and management requirements; student and faculty entitlements may differ.
- Microsoft 365 A7 has been available since 1 October 2026. Evaluate its applicable edition against AI, security and wider organisational needs.
These offers are not a simple cumulative ladder. Compare student and faculty editions separately and check the applicable eligibility conditions and product terms.
The retirement milestone for Office 365 A1 and Student Use Benefit is 1 January 2028. Office 365 A1 web-direct end of sale is 5 November 2026 and partner-channel end of sale is 1 May 2027. End of sale does not mean existing users immediately lose access. Existing agreements, licences, entitlements and pricing continue through their current term, with relevant changes at renewal or extension; 1 January 2028 is not a universal switch-off date.
Future options include Microsoft 365 A0 where its eligibility conditions are met, and paid student offers such as A2, A3, A5 and A7. The right choice depends on the institution’s agreement, users, devices and service needs.
Yes. Microsoft has announced changes to pricing and licensing structures.
Online Services pricing level changes apply at an institution’s first renewal or extension on or after 1 May 2027. Existing pricing remains in effect through the current term. Available suite and Teams options should be assessed against the applicable agreement and confirmed product guidance.
The impact will vary between organisations. Existing licences, user groups, and renewal dates will all play a part.
Storage remains pooled across the tenant. The planned model removes the existing 100 TB base allowance and bases entitlement on licensed users, with contributions depending on the applicable student or faculty licence. This forms part of the changes from 1 January 2028, with relevant changes applying at renewal or extension after the current term, not immediately.
Review current usage, licensed user profiles and future growth alongside retention and archive requirements. Confirm the applicable storage entitlement and agreement timing before making a plan.
Start with a clear view of your current environment. Review users, devices, licences, storage, and security requirements.
Next, model different licensing scenarios. Compare cost, functionality, and user experience.
The earlier you start planning, the more options you are likely to have. A phased approach can help reduce risk and avoid rushed decisions.
This update reflects the information available as at 5 November 2026. Some details remain subject to clarification and may change as further guidance and agreements are finalised.
We are also aware that a new Jisc Memorandum of Understanding with Microsoft is pending. We expect this to play an important role in how eligible UK institutions navigate the changes. However, until it is agreed and the terms are confirmed, we cannot say what provisions it will include or how these will affect individual institutions. It should not be assumed to apply to every education customer or to provide discounts, exemptions, delays or protection from the announced changes.
About the author
Tom Connolly, Divisional Lead – Education
Tom leads the Education team at Phoenix Software. He’s worked in education IT for over 12 years, alongside schools, colleges, universities, and research institutions. Today, he leads a team of more than 40 people.
Tom values honesty, integrity and getting to know the people he works with. He believes in being straightforward and approachable, taking the time to understand what matters to each customer and being there for the long term. It’s an approach he encourages across the team: be yourself, treat people well and build relationships you can be proud of.