Executive Summary
Microsoft has confirmed that commercial Microsoft 365 pricing changes take effect from 1st July 2026 for new and renewing customers, with existing customers moving to the new pricing at their next renewal after that date.
Several widely used Microsoft 365 licences will increase in price from 1st July 2026. At the same time, some important licences are not listed as receiving a suite price increase in Microsoft’s published update, including Microsoft 365 Business Premium and Office 365 E1. That makes Business Premium in particular worth closer attention for many SMEs.
Because Microsoft says pricing may vary by country and currency, this article uses expected UK pricing in GBP rather than simply converting the US dollar figures.
Introduction
If you read our earlier blog, Microsoft 365 Price Rise for UK SMEs in 2026: What You Need to Know, this follow-up is the practical version.
The original announcement explained that prices were changing. What UK businesses need now is a clear view of what those changes are likely to mean in pounds sterling from 1st July 2026 onwards. Microsoft has confirmed the date, and any organisation taking out new subscriptions after that point should be planning accordingly.
This is also not a blanket increase across every plan. Some licences will rise, while others are not shown as increasing in Microsoft’s published update. That matters because it affects not only cost, but also which licences may now represent better value.
What is changing from 1st July 2026
Microsoft says the new commercial pricing is effective from 1st July 2026 for new and renewing customers globally, with existing customers moving to the new prices at their next renewal after that date. Microsoft also says pricing may vary by country and currency, with local market adjustments where appropriate.
For UK businesses, the simplest way to look at this is through annual subscriptions paid yearly, because that is the lowest published per-user pricing route shown on Microsoft’s UK pricing pages for these plans. Other buying models are available, but they cost more.
Current UK annual pricing and estimated new annual pricing from 1st July 2026
To make this easier to use, the table below focuses on annual subscriptions paid yearly.
That means the figures shown are the upfront annual cost per licence, which is the lowest published per-user pricing route on Microsoft’s UK pricing pages for these plans. Other buying models are available, including monthly commitment and annual commitment billed monthly, but they cost more.
The table sets out the current UK annual price, the official published percentage increase, and the estimated new UK annual price. Because Microsoft also says prices may vary by country and currency, the new GBP figures should be treated as expected UK pricing for budgeting purposes.
All figures below are ex VAT, per licence, per year, on an annual subscription paid yearly.
| Licence | Current UK annual price | Official published increase | Estimated new UK annual price |
| Microsoft 365 Business Basic | £55.20 | 16.7% | £64.40 |
| Microsoft 365 Business Standard | £115.20 | 12.0% | £129.02 |
| Microsoft 365 Business Premium | £202.80 | 0% | £202.80 |
| Office 365 E1 | £92.40 | 0% | £92.40 |
| Office 365 E3 | £247.20 | 13.0% | £279.44 |
| Microsoft 365 E3 | £372.00 | 8.3% | £403.00 |
| Microsoft 365 E5 | £588.00 | 5.3% | £618.95 |
| Microsoft 365 F1 | £20.76 | 33.3% | £27.68 |
| Microsoft 365 F3 | £74.40 | 25.0% | £93.00 |
Why Business Premium deserves special attention
One of the most commercially useful takeaways for UK SMEs is that Microsoft 365 Business Premium is not shown as receiving a suite price increase in Microsoft’s published update.
That matters because Business Premium already combines productivity tools with stronger security and device management features than the lower-tier business plans. So while Business Standard will increase, Business Premium is not shown as increasing. For some businesses, that could make the gap between the two feel less significant when weighed against the additional features included in Business Premium.
In practical terms, this may be the point where Business Premium starts to look not just like the premium option, but like the better value option.
The same logic applies to Office 365 E1, which is also not listed as receiving a July 2026 suite increase.
What UK businesses should do now
This is a good time to review your Microsoft 365 licence mix before buying new subscriptions or reaching renewal.
Look for unused licences, check whether users are on the right plans, and pay particular attention to the value comparison between Business Standard and Business Premium. If you are currently buying on a more flexible billing model, it is also worth checking whether an annual commitment would reduce your overall spend.
A practical example: on the annual pricing above, a 20-user business on Microsoft 365 Business Standard would move from £2,304.00 per year to about £2,580.40 per year, before VAT. That is an increase of about £276.40 per year across the team.
This is exactly why licence reviews are worth doing before the new pricing takes effect.
FAQs
Microsoft says the commercial pricing changes are effective from 1st July 2026 for new and renewing customers, with existing customers moving to the new prices at their next renewal after that date.
The figures above are best described as expected UK pricing. Microsoft has confirmed the global pricing changes, but also says prices may vary by country and currency.
No. Based on Microsoft’s published update, Microsoft 365 Business Premium and Office 365 E1 are not listed among the suite licences receiving the July 2026 increase.
Because annual subscriptions paid yearly are the lowest published per-user prices shown on Microsoft’s UK pricing pages for these plans. That makes them the clearest benchmark for comparing today’s pricing with the new position from 1st July 2026.
Because Business Premium is not shown as receiving a July 2026 suite price increase, yet it already includes advanced security and device management capabilities. That makes it an especially important value discussion for UK SMEs.
Final thoughts
Microsoft 365 prices will increase on several widely used licences from 1st July 2026. But this is not only a price rise story. For UK SMEs, it is also a chance to review value.
The most useful takeaway may not simply be which licences are going up. It may be which ones are not. Microsoft 365 Business Premium stands out for exactly that reason, and this round of changes gives businesses a good reason to look again at whether they are on the right plans for their users, their security needs, and their budget.
Call to action
If you would like help reviewing your Microsoft 365 licences before 1st July 2026, Get Support can help you assess your current setup, compare your options, and make sure you are not paying more than you need to.
We can help you with:
- reviewing your current Microsoft 365 licence mix
- comparing Business Standard and Business Premium
- reducing unnecessary Microsoft licensing spend
- choosing the right billing model for your business
Speak to Get Support if you would like a practical Microsoft 365 licence review for your business.