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Microsoft 365 Price Increase on 1st July 2026
- Innovec
- Mar 1
- 2 min read
Updated: 10 hours ago
Microsoft have announced mandatory changes to their pricing for Microsoft 365 licenses as of 1st July 2026. The precise increases have not yet been announced for UK pricing – however will be around 10%. We expect to get final pricing on 1st June and will update this page once we have the details. These increases will also apply to non profit licenses.
Existing pricing can be maintained by committing to an annual agreement and payment terms prior to 1st July 2026.
Please note that these changes are being applied by Microsoft. These are out with our control and will impact all Microsoft resellers and those buying from Microsoft directly.
Plan | Current (per user/month) | New (per user/month) | Approx. increase |
Business Basic | $6.00 | $7.00 | ~17% |
Business Standard | $12.50 | $14.00 | ~12% |
Business Premium | $22.00 | $22.00 | No change |
Office 365 E1 | $10.00 | $11.50 | ~15% |
Office 365 E3 | $23.00 | $25.50 | ~11% |
Microsoft 365 E3 | $36.00 | $39.00 | ~8% |
Microsoft 365 E5 | $57.00 | $62.00 | ~9% |
Frontline F1 | $2.25 | $3.00 | ~33% |
Frontline F3 | $8.00 | $10.00 | ~25% |
USD list prices per user per month. GBP pricing to be confirmed 1st June 2026. This page will be updated accordingly.
Can you avoid these increases?
Existing pricing can be maintained by committing to an annual agreement and payment terms prior to 1st July 2026. This means you would need to inform us prior to that date that you wish to pay for your licences annually and you would be billed accordingly. During that annual commitment you can add licences but you cannot remove any, so if you expect stability with your staff quantity then this could be a good option.
It is worth noting that Microsoft 365 Business Premium is not increasing in price under the current announcement.
For businesses currently on Business Standard, the cost gap between the two plans is now at its lowest point, meaning the step up to Premium, which includes enterprise-grade security tools that would otherwise require separate spend, may be worth exploring.
If you would like us to compare your current setup against what Premium would offer, we are happy to do that.
Should we look to move away from Microsoft 365?
We still believe Microsoft 365 offers great value and continue to recommend it as a capable and useful solution for most businesses. The key additions coming to licences from July 2026 include:
Copilot Chat built into Word, Excel, PowerPoint, Outlook and OneNote across most plans. Previously a paid add-on.
URL Safe Links added to Business Basic, Business Standard and Office 365 E1.
Microsoft Defender for Office 365 Plan 1 added to E3 plans.
Intune Remote Help and Advanced Analytics added to E3 and E5.
Security Copilot rolling out to all E5 customers.
Business Premium pricing is unchanged.
To read the full details provided by Microsoft, click here.
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