Marketing & Operations
Claudia Sterling
Microsoft has raised prices on some Microsoft 365 plans. Here's a simple rundown of what's going up, by how much, and when it will reach your bill.
Microsoft 365 is getting more expensive - here’s the short version
Microsoft has increased prices across most of its Microsoft 365 and Office 365 plans. The change came into effect on 1 July 2026, but most businesses won’t see it until their subscription renews. Here’s what’s changed and what it means for you.
Which plans are going up?
The increase varies by plan, and the entry-level plans have taken the biggest percentage rise.
Business plans
Microsoft 365 Business Basic - up around 17%
Microsoft 365 Business Standard - up around 12%
Microsoft 365 Business Premium - no change
Microsoft 365 Apps for Business - up around 21%
Enterprise plans
Office 365 E1 - no change
Office 365 E3 - up around 13%
Microsoft 365 E3 - up around 8%
Office 365 E5 - up around 8%
Microsoft 365 E5 - up around 5%
Frontline plans
Microsoft 365 F1 - up around 33%
Microsoft 365 F3 - up around 25%
Standalone Teams and Copilot add-on licences aren’t affected. Exact UK prices depend on your plan, commitment term and billing option.
When will you see the new prices?
The new pricing has applied to new purchases since 1 July 2026. Existing subscriptions stay on their current price until their next renewal on or after 1 July.
That means the timing depends on your own renewal date. If your subscription renewed in July, you may see the new price on your August invoice. If it renews later in the year, the change will arrive then. And if you renewed just before July, you’ll keep your current price until next year.
What do you get for the extra cost?
Microsoft is presenting this as more value rather than a straight price rise, with new features arriving across the plans from this month:
Business plans get an extra 50GB of mailbox storage per user and improved Copilot Chat.
Microsoft 365 E3 now includes Microsoft Defender for Office 365 Plan 1, adding stronger email and phishing protection.
Enterprise plans gain additional security, compliance and device management features.
Business Premium is now better value
The most telling part of this change is what didn’t go up. Business Standard rose by around 12%, while Business Premium stayed exactly where it was. That narrows the price gap between the two plans by around 16%.
It’s hard to see that as anything other than deliberate. Microsoft is making it easier to justify moving up to Business Premium, which adds much stronger security: advanced threat protection, device management through Intune, and conditional access. If you’ve been weighing up the upgrade, the difference in cost is now the smallest it’s been.
What should you do?
Check your renewal date so you know when the new price will reach you.
Review your licences. Unused seats and people on the wrong plan quietly add up, especially after a price rise.
Compare Standard and Premium again. With the gap narrower, the upgrade may now make more sense for your business.
If you’d like help working out what this means for your business, get in touch and we’ll take you through it.
