Microsoft has announced upcoming changes to its non-profit licence grants, which will take effect from Tuesday 1 July 2025.

These changes will impact organisations currently using the free Microsoft 365 Business Premium or Office 365 E1 licences. From this date, these free licences will no longer be available, and on the next renewal, they will automatically convert to paid Business Premium licences at a cost of £4.20 per user per month.

These changes apply only to free grant licences. Paid licences are not affected.

Microsoft will continue to offer up to 300 free Microsoft 365 Business Basic licences, as well as up to 2,000 free Office 365 E1 licences through an Enterprise Agreement. Discounts of up to 75% will also remain available on Business Premium and other Microsoft 365 licences.

Organisations will receive reminders 30, 60, and 90 days before any changes take effect. If you choose not to move to paid licences, your data will remain accessible for 90 days after expiry.

For further information, please visit the Microsoft website.