Executive summary
Microsoft has confirmed global price increases for Microsoft 365 commercial and government plans starting July 2026. UK SMEs will see higher per-user costs for Business Basic, Business Standard, and frontline licences, while Business Premium and E1 remain unchanged. The good news is that there are practical steps you can take now with the help of a trusted IT partner like Get Support IT Services.
What is happening with Microsoft 365 pricing in 2026?
From July 2026, Microsoft will raise prices for many Microsoft 365 and Office 365 commercial plans worldwide. This includes:
- Microsoft 365 Business Basic and Business Standard
- Frontline worker licences such as F1 and F3
- Enterprise plans including E3 and E5
Business Premium and E1 licences will not change in price.
These changes follow earlier adjustments and reflect Microsoft’s investment in AI tools such as Copilot, enhanced security, and compliance features. For UK SMEs, this means budgeting for higher subscription costs from mid-2026 unless you are already on one of the unaffected plans.
What has Microsoft actually announced for 2026?
Here are the headline increases:
- Business Basic: up 16.7%
- Business Standard: up 12%
- Frontline F1: up 33%
- Frontline F3: up 25%
- Enterprise E3: up 8.3%
- Enterprise E5: up 5.3%
Government suites will follow similar patterns, phased by local regulations.
What do the 2026 price rises mean for a typical UK SME?
Let’s make this real with two simple examples. These are illustrative only, not official prices:
Example 1: Professional services firm with 25 users on Business Standard
- Current annual cost: £9.60 × 25 × 12 = £2,880
- After a 12% increase: approx. £3,225
- Difference: about £345 per year, or £28.75 per month
Example 2: Retail business with 40 frontline licences (F1)
- Current annual cost: £1.73 × 40 × 12 = £830.40
- After a 33% increase: approx. £1,105
- Difference: about £275 per year, or £23 per month
For many SMEs, these changes will not break the bank, but they will add up over time. Planning ahead is key.
Why is Microsoft putting prices up again?
Microsoft says the increases reflect ongoing investment in new features and security. Here are some of the key improvements:
- More than 1,100 new features added across Microsoft 365
- AI-driven productivity tools such as Copilot, available as a £30-per-month add-on
- Better email security with Defender for Office P1 expanding to E3 and URL checks added to E1, Business Basic, and Business Standard
- Improved device management with Intune Remote Help, Advanced Analytics, and Intune Plan 2 for E3/E5 customers
- Security Copilot embedded into Defender, Entra, Intune, and Purview for faster threat response and compliance management
Microsoft is also positioning these upgrades as part of its strategy to compete with Google Workspace. These improvements are significant, but not every SME will use every feature. That’s why it is worth reviewing which tools your business really needs before deciding on plan changes.
Five practical steps to manage your Microsoft 365 bill
Here’s what you can do now:
- Audit your licences
Remove unused or duplicate accounts. Many businesses pay for licences they do not need.
- Right-size your plans
Check which plans staff genuinely need. If you are on Business Standard and need advanced security, Business Premium might now be better value since its price is not increasing.
- Review billing terms
Annual commitments often cost less than monthly. Align renewal dates with your budgeting cycle.
- Assess add-ons carefully
AI and advanced security add-ons are great, but only if they deliver real value for your business.
- Plan ahead for 2026
Build these increases into your IT and financial plans now to avoid surprises later.
How Get Support can help you prepare
At Get Support IT Services, we are more than a licence reseller. We are a Microsoft partner and a long-term IT support provider for UK SMEs. Here’s how we can help:
- Run a Microsoft 365 licence and usage review
- Map out cost scenarios for 2026 renewals
- Recommend plan combinations that balance cost, security, and productivity
- Explain your options in plain English, not jargon
Want to get ahead of the 2026 changes? Contact us today for a friendly chat or a Microsoft 365 review.
Frequently asked questions
From July 2026. If your renewal is after that date, you will see the new pricing.
No. These changes apply to commercial and government plans only.
Not entirely, but you can reduce the impact by optimising licences and plans. Some plans such as Business Premium and E1 are not increasing.
Microsoft usually applies separate pricing for these sectors, but increases may still apply.
You may benefit from locking in current pricing for another term before the increase.
In Summary
The 2026 Microsoft 365 price rises are important, but they are manageable with the right advice. Get Support IT Services can help you plan ahead and keep costs under control. Contact us today to book your Microsoft 365 review or talk through your options.