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 (shared pro rata among all Microsoft and Azure tenants in the Cabinet Office)
What the charges cover
Cross-government discount
The Cabinet Office secures a 12% Azure discount through 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 standard security guardrails.
These controls ensure your account meets government data protection standards. This means 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, centralised billing, financial reporting, and account provisioning. This removes the administrative and procurement burden from your service team.
Shared infrastructure and support
Sharing costs gives your team access to 24-hour Microsoft Unified Support (which covers both Microsoft and Azure) and a robust Azure landing zone managed by the Platform Engineering team. Sharing these costs pro rata makes high-tier enterprise resources affordable and accessible to all teams, regardless of their size.