Microsoft 365 Price Rise July 2026 — What UK Businesses Need to Know
If your business uses Microsoft 365, there’s an important change coming that could affect your IT budget. Microsoft has confirmed that prices for several of its most popular business plans are increasing from 1 July 2026 — and if you’re on an annual subscription, the timing of your renewal matters.
Here’s what you need to know.
Which plans are going up?
The increases apply to the Business and Enterprise tiers that most UK SMEs use day-to-day. Here’s a summary of how current pricing compares to what’s coming:
| Plan | Current price | New price (from July 2026) | Change |
|---|---|---|---|
| Business Basic | £5.75/user/month | ~£6.60/user/month | ~15% ↑ |
| Business Standard | £11.55/user/month | ~£12.90/user/month | ~12% ↑ |
| Business Premium | £18.10/user/month | Unchanged | — |
All prices per user, per month, on annual commitment, excluding VAT. New prices are indicative pending Microsoft’s official UK confirmation.
The standout point here is that Business Premium is not increasing. That narrows the gap significantly between Standard and Premium — and for many businesses, it changes the value calculation meaningfully.
Why is Microsoft putting prices up?
Microsoft says the increases reflect the fact that Microsoft 365 has evolved well beyond email and Office apps. The platform now includes built-in AI features via Microsoft Copilot, advanced endpoint security, and device management tools that previously required separate licences. The price rise is, in effect, Microsoft bringing those capabilities into the base subscription cost.
When will you actually pay more?
The new prices take effect on 1 July 2026 for new subscriptions and new customers. For existing subscribers, the increase kicks in at your next renewal after that date.
That means if your annual subscription renews in August 2026, you’ll pay the new price from that point. If it renews in June 2026 — before the deadline — you lock in current pricing for another full year.
It’s worth checking your renewal date now.
Is it worth upgrading to Business Premium?
For many UK businesses, the answer is yes — and the July pricing change makes the case stronger than ever.
Business Premium includes everything in Business Standard, plus Microsoft Intune for device management, Microsoft Defender for Business endpoint protection, and Azure Information Protection for data security. Businesses that are serious about cybersecurity, have remote or hybrid teams, or handle sensitive client data will likely find that Premium replaces several standalone security tools they’d otherwise pay for separately.
With Business Standard rising to ~£12.90/user/month and Business Premium staying at £18.10, the gap drops to around £5.20 per user per month — for significantly more protection.
What should you do before July?
Check your renewal date. If you’re on an annual subscription renewing before 1 July 2026, you can lock in current pricing for another year. Contact your provider to confirm.
Review your licences. It’s common for businesses to have users on the wrong plan — either overpaying for features they don’t use, or missing out on tools that would genuinely help them. A quick audit before the price rise is good timing.
Consider whether Premium makes sense. If you’re currently on Business Standard, the narrowing gap to Premium means now is a good time to weigh up whether the additional security features are worth it for your team.
Need help reviewing your Microsoft 365 licences?
As a Microsoft partner, Microcare can review your current setup, check your renewal dates, and make sure you’re on the right plan before July’s changes take effect. In many cases we’re able to reduce overall licensing costs even when prices go up.