From 1 July 2026, Microsoft is increasing the price of most Microsoft 365 business plans.
Before you panic — this won’t affect you straight away.
If you’re already subscribed, your current price stays the same until your next renewal. So, there’s nothing you need to do today.
But it is worth understanding what’s changing, why it’s happening, and what it could mean for your business.
What’s Changing?
For the first time in four years, Microsoft is increasing the cost of most Microsoft 365 licences, with rises typically sitting between 12% and 17% for small businesses, and smaller increases for enterprise plans.
Here’s a breakdown of what that looks like in the UK (based on annual licences paid monthly):
| Business Plan | Current UK Price | New Price | Price Increase |
|---|---|---|---|
| Business Basic | £4.83 | £5.67 | +17% |
| Business Standard | £10.08 | £11.34 | +12% |
| Business Premium | £17.75 | £17.75 | No Change |
| Enterprise Plan | Current UK Price | New Price | Price Increase | Frontline F3 | £6.51 | £8.09 | +24% |
|---|---|---|---|
| Microsoft 365 E3 | £32.55 | £35.18 | +8% |
| Microsoft 365 E5 | £51.45 | £54.18 | +5% |
When Will This Affect You?
It really comes down to where you are in your current contract. If your renewal is before 1 July 2026, you may be able to lock in your current pricing for another year. If your renewal date falls after 1st July, your pricing won’t change straight away — it will stay the same until your renewal, at which point you’ll move onto the new rates.
Why Is the Price Increase Good For Your Business?
It can be easy to focus on the numbers when you hear about a price increase, but there are actually some real benefits behind it.
Over the past few years, Microsoft has added more into its 365 plans — including features that previously needed separate licences. In many cases, you’re now getting more built into your existing plan, rather than paying extra for it.
That includes:
- More email storage. Business plans are getting an extra 50GB per mailbox, meaning less chance of inboxes filling up and fewer businesses needing to pay for additional storage.
- Better protection. Microsoft is strengthening the baseline security across all plans, helping to protect against scam emails, malicious links, and other common threats.
- Built-in AI tools. AI is no longer an add on — it’s becoming part of the core platform. Tools like Copilot Chat are now being integrated into apps like Outlook, Word and Excel to help with everyday tasks.
- Improved device and security management. Businesses have stronger control over devices, apps, and data without needing separate tools. It also means IT teams can manage devices, fix issues, and keep things secure — even if staff are working remotely.
Put simply, the plans are doing a lot more than they used to.
Should You Upgrade?
With Business Premium staying the same price and the gap between that and Business Standard getting much smaller, it’s something a lot of businesses have been asking us.
The honest answer is — it depends on your business and how you work. It’s not something everyone needs.
Up until now, Premium was a bigger jump in cost, so many businesses stayed on Standard and didn’t think much about it. With that gap now narrowing, it’s becoming a more realistic option for some.
For businesses that need stronger security or better control over their devices, upgrading could now make a lot more sense than it did before.
That said, it’s not a one-size-fits-all decision, and it’s always about choosing what’s right for your setup.
If you’re unsure whether it’s worth it for your business, we’re always happy to talk it through and help you figure out the best fit.
A Simple Way to Keep Costs Under Control
Before your renewal comes around, and especially with the upcoming price changes, it’s worth taking a couple of minutes to review your licences.
A simple review can help you:
- Remove unused licences (“ghost users”)
- Make sure everyone is on the right plan
- Cut out unnecessary add-ons
- Avoid paying for things you don’t use
In some cases, this alone can offset part of the price increase.
The Bottom Line
Yes — prices are going up. But so is what you get.
With more security, more storage, and built-in tools like Copilot becoming part of the platform, it’s doing a lot more than it used to — often without needing extra add-ons or separate tools.
If you’re unsure where you stand, or just want a quick chat before your renewal comes around, we’re always happy to talk it through.
