Microsoft 365 price increases are coming.
From 1 July 2026, Microsoft is implementing a global list price increase across a number of commercial and nonprofit Microsoft 365 and Office 365 suites.
New customers will see the new pricing from that date. Existing UK customers will typically see the change at their first renewal after 1 July 2026, which for many will mean their NCE renewal date.
The estimated UK impact by licence
- Microsoft 365 Business Basic: 16% to 17% increase
- Microsoft 365 Business Standard: 12% increase
- Microsoft 365 E3: 8% increase
- Microsoft 365 E5: 5% increase
- Microsoft Frontline F1 and F3: increases from 15% to 33%
- Microsoft 365 Business Premium: 0% increase, remaining at its current price point
For some organisations, this will be a manageable increase. For others, especially those with large numbers of Business Basic, Business Standard or Frontline users, it could add a significant amount to the annual Microsoft 365 bill.
Do not leave this until renewal
The important point is not to leave this until renewal. There are practical steps that can be taken now.
- Review your current Microsoft 365 licences.
- Check whether users are on the right plans.
- Remove unused or duplicated licences.
- Look at whether Business Premium makes sense where security, device management and productivity are all required.
- Most importantly, where suitable, consider renewing before 1 July 2026 to lock in current pricing for 12 to 36 months.
This is not about rushing into a decision. It is about making sure you understand the commercial impact before Microsoft's pricing changes arrive.
How Managed247 can help
At Managed247, we are helping customers review their Microsoft 365 position, understand their renewal dates and model the likely cost impact.
If you would like to step through this with us, book a 30-minute call with our Modern Work 365 team.
There is still time to act!
