Public Sector

Lock in Microsoft 365 E5 pricing before July changes

A practical E3 to E5 upgrade for Local Government

Local authorities currently have an opportunity to move from Microsoft 365 E3 to E5 under the SPA24 framework, with 3‑year ramp options available. This allows councils to secure today’s E5 pricing and phase adoption over time, ahead of expected Microsoft 365 E5 price increases from 1 July.

While the SPA24 framework runs until October 2029, pricing and commercial flexibility are changing sooner. Acting now helps councils protect budgets, strengthen security and compliance, and create stability during a period of financial pressure and organisational change.

Expected Microsoft 365 E5 price increase from 1 July

Microsoft has announced pricing and packaging changes, with Microsoft 365 E5 expected to increase by around 8%. For councils with hundreds or thousands of users, this can have a material impact on multi‑year budgets.
Engaging early gives you the opportunity to lock pricing before the increase takes effect.

3‑year ramp options under SPA24

Under SPA24 and Health MOU, eligible local authorities can use 3‑year ramp options when purchasing E5. This flexibility is particularly valuable where security uplift is needed but full rollout cannot happen immediately. This means you can:

Phase users over time
Align spend to adoption readiness
Avoid large, upfront cost increases

Greater certainty during local government reorganisation

With local government reorganisation and service consolidation ongoing, pricing certainty matters more than ever. Rather than waiting, many councils are choosing to stabilise their Microsoft position before restructuring progresses.

Reduce the need for renegotiation mid‑transition
Support a consistent security and compliance baseline
Provide cost predictability through organisational change

Why upgrade from E3 to E5

Microsoft 365 E5 is the natural, low‑risk step‑up from E3 for local authorities that want to strengthen their digital foundations without unnecessary complexity.

With E5, councils can:

Improve cyber security and threat protection
Strengthen compliance, information governance and audit readiness
Reduce operational risk and tool sprawl
Get more value from their existing Microsoft investment

E5 provides a stable platform for today’s needs, while keeping future options open, without forcing decisions on emerging or immature licensing models.

Who this is for?

This opportunity is particularly relevant if you are:

Due to renew Microsoft 365 in the next 6–12 months
Under pressure to improve security and compliance outcomes
Planning budgets ahead of July pricing changes
Managing or preparing for organisational change or reorganisation

Confirm eligibility under SPA24 / Health MOU
Understand the impact of July pricing changes on your estate
Assess whether a 3‑year ramp option makes financial sense
Build a renewal approach aligned to budgets and organisational change

Prism

Turn your E5 upgrade into measurable security value

Upgrading from E3 to E5 strengthens your security baseline, but value is only realised if those capabilities are adopted and governed effectively. Prism for Security helps councils gain visibility of their Microsoft security posture, track E5 adoption, and demonstrate real risk reduction, providing confidence as you lock in pricing and phase deployment under SPA24.

👉 Include Prism for Security in your E5 Renewal & Price Protection Review