Azure hosting recharge policies (FY 2026 to 2027)
We recharge all Azure hosting costs to your service team. When you request Azure subscriptions and tenancies, you must provide:
- your organisation’s cost code
- contact details for your finance representative
- contact details for your technical lead
Recharge model
The recharge includes:
- 100% of your Azure subscription cost
- a 5% service fee
- shared Azure platform infrastructure and Microsoft Unified Support costs (pro rata)
Why we apply these charges
Cross-government discount
The Cabinet Office secures a 12% Azure discount (DAT21 or APA). We pass this discount directly to your Microsoft or Azure tenants. This saving offsets the 5% service fee.
Security and compliance
The service fee and shared platform costs fund central security controls. This includes threat monitoring from the Cabinet Office Security Operating Centre (SOC), automated compliance checks, and security guardrails. These tools ensure your account meets government data protection standards and mean you do not have to build these security services yourself.
Contract management
The service fee covers the administration of the Microsoft and Azure contract. This includes vendor relations, billing, financial reporting, and account provisioning. This removes the procurement and administrative burden from your service team.
Shared infrastructure and support
Sharing costs gives you access to 24/7 Microsoft Unified Support and an Azure landing zone managed by the Platform Engineering team. This makes high-tier resources affordable for all teams.