Microsoft education licensing is confusing by design. Here is what UK schools actually get for free, what the paid tier adds, and how to avoid buying something you already have.

Microsoft's education licensing is genuinely confusing, and the pricing pages assume you already know the vocabulary. This is the plain-English version for UK schools: what the options are, roughly what they cost, and — the bit that matters most — what you might already be entitled to without paying anything.

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Neil Kidd · Governor, Worple Primary School · Prefer the detail first? Keep reading.

Start here: you may already have Copilot Chat

Before you price anything, check what you have. Schools with Microsoft 365 A1, A3 or A5 licences generally get access to Copilot Chat — the web-based, data-protected chat experience — at no extra cost when staff sign in with their school account. For a large proportion of primary schools, that alone covers the realistic use cases: drafting letters, planning support, summarising documents, rewriting text for different audiences.

The paid upgrade buys something different: Copilot inside the Office apps — generating a deck in PowerPoint, drafting in Word from your own files, summarising a Teams meeting you missed. Useful, but a genuine step up in cost, and not where most schools' time is actually lost.

Practical advice: before spending anything, ask your IT provider one question — "what Copilot access do our existing A1/A3/A5 licences already include?" A surprising number of schools are quoted for something they partly have.

The tiers, in plain English

Deliberately, there are no exact per-user figures here: Microsoft's education pricing changes, varies by reseller and agreement, and anything quoted in a blog post ages badly. Your reseller or IT partner will give you the current number — and it is worth asking two of them, because education pricing is more negotiable than most schools assume.

How to decide what to buy

  1. Audit before you buy. Find out what staff already use AI for. Most schools discover it is drafting and planning — both well covered by the included Chat tier.
  2. Pilot with a handful of people. Buy a small number of paid licences for the staff who would benefit most — usually the head, a deputy, the business manager and the office team — and run it for a term.
  3. Measure time, not enthusiasm. The question is not "did people like it?" but "what did it save?" Ask your pilot group to note hours saved on specific tasks.
  4. Then scale, or don't. A whole-school rollout that nobody was trained to use is the most expensive way to buy nothing.

The bigger cost most schools forget

The licence is rarely the expensive part. Staff who do not know how to prompt well get mediocre output, decide AI is overhated, and quietly stop using the thing you are paying for. Schools that get value from AI almost always did one thing first: they trained people properly on a handful of real, school-specific tasks.

That is why our own packages and one-off sessions are built around training rather than tools — the licence is a small line item next to the value of staff actually using it well.

For the platform comparison, see our Microsoft Copilot for UK schools review and the Google Gemini equivalent. And before rolling anything out, make sure it sits inside a policy that reflects the KCSIE 2026 AI changes.

Not sure where your school stands?

I write AI policies, staff agreements, governor briefings and parent letters for UK schools — currently free for a small number of schools building case studies.

Frequently asked questions

Is Microsoft Copilot free for schools?

Copilot Chat, the data-protected web and Teams chat experience, is generally included at no extra cost with Microsoft 365 A1, A3 and A5 education licences. The full Microsoft 365 Copilot that works inside Word, Excel, PowerPoint and Outlook is a paid per-user add-on.

Does Microsoft 365 A3 include Copilot?

A3 typically includes access to Copilot Chat with commercial data protection when staff sign in with their school account. It does not include the paid Microsoft 365 Copilot add-on that embeds Copilot within the Office apps.

How much does Copilot cost per teacher in the UK?

Microsoft publishes discounted education pricing per user per month on an annual commitment, but the figure changes and varies by reseller and agreement. Ask your IT partner or reseller for a current quote, and it is worth comparing two.

Should a primary school buy Copilot for every member of staff?

Rarely as a first step. Most primary schools get better value piloting paid licences with leadership and office staff, training people properly, then deciding whether to scale based on measured time saved.

What is the biggest hidden cost of AI in schools?

Training. Staff who are not shown how to use the tools well produce weak results and stop using them, which turns the licence spend into wasted budget.

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