A new round of Microsoft 365 price increases are taking effect from 1 July 2026. These changes will affect most business subscriptions and are likely to have a noticeable impact on monthly IT costs for many organisations. Also, the increases apply to new subscriptions as well as renewals.

Building blocks in Microsoft colours stacked in increasing heights to represent the Microsoft 356 price increases.

Which Microsoft 365 licences will have price increases – and what are the likely costs?

Licence Price increase Current price New price
Business Basic +17% £4.60 £5.50
Business Standard +12% £9.40 £10.50
Microsoft 365 E3 +8% £30.20 £32.70
Microsoft 365 E5 +5% £47.80 £50.00+
Frontline F1/F3 Up to 33%

Microsoft 365 licences with NO price increases

  • Business Premium (£17.60)
  • E1 plans

What should you do?

  1. Review your licences: ensure you have the right number of licenses (not more than you need) and at the right level
  2. Consider switching plans: with the additional security features in Business Premium its cost difference is now less
  3. Renew early to lock in current pricing

Priority IT can help you check and review your current subscriptions to ensure you are using the best ones for your business. We can also identify subscriptions that can be removed to help save you money. Call us on 01225 636000 or email hello@priorityit.co.uk for more details.