Microsoft 365 Price Increase July 2026: What It Means for Your UK Business

When Will Microsoft 365 Prices Increase in the UK?

The pricing update takes effect from 1 July 2026. New customers will move to updated pricing immediately, while existing customers will see changes at their first renewal after this date. Those renewing before 30 June 2026 retain current pricing for their full agreement duration.

How Much Are Microsoft 365 Prices Increasing?

Microsoft has confirmed pricing changes vary by product, with increases of up to 33% on certain licences. Indicative global increases include:

• Microsoft 365 Business Basic: ~17% increase
• Microsoft 365 Business Standard: ~12% increase
• Microsoft 365 E3: ~8% increase
• Microsoft 365 E5: ~5% increase
• Frontline F1 licences: up to 33% increase

Business Premium and selected Office 365 licences are expected to remain unchanged.

Why Microsoft Is Increasing Microsoft 365 Prices

Microsoft has positioned the increase as reflecting significant expansion of built-in capabilities across the platform. The company has delivered over 1,100 new features across Microsoft 365, security, Copilot, and SharePoint, emphasising AI-driven productivity and security improvements.

What New Value Is Being Added to Microsoft 365?

AI-powered productivity with Copilot

Copilot Chat brings secure AI assistance into Word, Excel, PowerPoint, Outlook, and OneNote. New capabilities will understand user context from email and calendar data, introducing Agent Mode for more natural collaboration.

Stronger security included by default

Advanced security features are embedded into core licences, including expanded email and collaboration protection through Microsoft Defender, improved malicious link detection, and enhanced safeguards across Teams and Exchange workloads.

Improved endpoint management and resilience

Enterprise plans will include enhanced endpoint management through Microsoft Intune with advanced analytics and remote support tools. Continued investment in the Windows Resiliency Initiative helps organisations recover from system failures or security incidents.

Security Copilot embedded into operations

Security Copilot agents are rolling out across Defender, Entra ID, Intune, and Purview, supporting security teams by automating tasks and surfacing insights faster.

What You Should Do Now

SysGroup recommends UK customers:

• Review current licences and actual usage patterns
• Identify unused, duplicated, or misaligned subscriptions
• Consider early renewal to lock in current pricing
• Ensure licences align with security, compliance, and productivity needs

How SysGroup Can Help

SysGroup offers support including:

• Microsoft 365 licence reviews and optimisation
• Renewal planning and cost forecasting
• Security and productivity alignment
• Guidance on Copilot readiness and security capabilities
• Access to current Microsoft pricing and promotions

Sources

• Advancing Microsoft 365: New capabilities and pricing update — Microsoft 365 Blog
• Microsoft 365 Price Increase Announcement — IDC Resource Center