Overview: What’s Happening to Microsoft 365 Pricing
Microsoft has confirmed that commercial Microsoft 365 plans (Business and Enterprise) will see price increases worldwide starting 1 July 2026. These changes reflect added capabilities: including AI features, enhanced security, and endpoint management being built into base plans.
For UK businesses, this means that when your subscription renews after July 1, 2026, you’ll pay higher per-user licence costs on many common Microsoft 365 plans.
Current UK Microsoft 365 Business Pricing (Indicative)
Microsoft 365 Business: Current vs Estimated Prices (UK)
| Plan | Current UK Price (per user/month) | New Price After Jul 2026 (est.) | Approx. Change |
|---|---|---|---|
| Business Basic | ~£4.60 – £4.90 | ~£5.40 – £5.70* | ~15 % ↑ |
| Business Standard | ~£9.60 – £10.30 | ~£11.00 – £11.70* | ~10 % ↑ |
| Business Premium | ~£16.90 – £18.10 | Likely unchanged or modestly up* | ~0 % |
| Enterprise E3 | ~£29.00+ | ~£31.30+* | ~8 % ↑ |
| Enterprise E5 | ~£47.10+ | ~£49.40+* | ~5 % ↑ |
| Frontline F1 / F3 | ~£6 – £8+ | ~£8 – £10+* | ~25 – 33 % ↑ |
Actual UK prices will depend on local pricing decisions and GBP/USD exchange rates at the time of renewal.
When You’ll See the Price Increase
- Effective date: 1 July 2026 - this is when Microsoft updates list pricing globally.
- Your price change: usually applies at your next renewal or new purchase after July 1, 2026. If your current subscription renews before that date, you may avoid the hike until the next renewal.
What’s Driving the Price Changes
Microsoft states that the price changes are to reflect the evolution of Microsoft 365 into a platform that includes:
- Advanced security and threat protection
- Enhanced endpoint and device management
- AI-powered productivity (including Copilot integrations)
- More built-in services without separate licences
In short, the base subscription will include more capabilities — but at a higher price for most commercial plans.
Tips for UK Businesses
- Review your renewal dates now - if your subscription renews soon, you might lock in current pricing before the July 2026 changes.
- Audit your licences - ensuring users have the right plan can reduce unnecessary spend before the increase hits.
- Consider plan optimisation - some businesses may save by standardising on Business Premium if it delivers better value through included security tools.
Summary
- Microsoft 365 business prices in the UK are increasing - globally effective 1 July 2026.
- Business Basic and Business Standard plans are expected to rise by around 12–17 %.
- Business Premium and Office 365 E1 should remain unchanged.
- UK prices reflect these global adjustments, and will apply on renewal after July 2026.
Next Steps
Get in touch with us today for an audit of your current licenses, we can then work with you to optimise your licensing before the price increase. On average we will be able to save you up to 15% on your current licensing costs.
Contact us here
