Microsoft 365 prices increase 1 July 2026 — review your subscriptions now
Microsoft has announced pricing increases for most Microsoft 365 commercial subscriptions, effective 1 July 2026.
Key changes affecting UK businesses:
| Product | Current price (per user/month) | New price (per user/month) |
|---|---|---|
| Microsoft 365 Business Basic | £5.00 | £5.80 |
| Microsoft 365 Business Standard | £10.40 | £11.70 |
| Microsoft 365 Business Premium | £18.30 | No change |
| Microsoft 365 E3 | £30.00 | £32.50 |
| Microsoft 365 E5 | £47.50 | £50.00 |
The good news: Business Premium is not increasing. With Intune, Defender for Business, Conditional Access, and device compliance built in, it continues to be the strongest value in the Microsoft portfolio. If you are on Business Standard, now may be the right time to consider upgrading.
What to do
- Renewals before 30 June 2026 — you can lock in current pricing for another 12 months.
- Renewals after 1 July 2026 — the new pricing will apply. Check whether your current plan still offers the best value.
- Review your licence assignment — many organisations are paying for unused or underused licences.
What’s changing beyond price
Alongside the price update, Microsoft is rolling out new capabilities from June 2026, including:
- Microsoft Defender for Office 365 Plan 1 included in more suites
- Intune Remote Help, Advanced Analytics, and Cloud PKI
- Expanded Copilot Chat capabilities
Microsoft says these updates reflect “the significant innovation delivered over the last several years.”
If you would like us to review your Microsoft 365 setup before the price change takes effect, get in touch.