Microsoft 365 Price Increase July 2026: What It Means for Your UK Business

Microsoft has confirmed upcoming Microsoft 365 price increases for UK customers, effective 1st July 2026. These changes will impact a wide range of Business, Enterprise, and Frontline licences and are directly linked to significant new investments in AI, security, and endpoint resilience across the Microsoft 365 platform. 

At SysGroup, our priority is helping UK organisations understand what is changing, why it is happening, and how to prepare effectively to manage costs and reduce risk. 

When Will Microsoft 365 Prices Increase in the UK? 

The Microsoft 365 pricing update takes effect from 1st July 2026. 

• New customers from this date will move onto the updated pricing immediately. 

• Existing customers will see the new pricing applied at their first renewal after 1st July 2026. 

• Customers who renew before 30th June 2026 will retain current pricing for the full duration of their agreement. 

This creates a clear window for UK organisations to review licensing and consider early renewal to lock in today’s pricing. 

How Much Are Microsoft 365 Prices Increasing? 

Microsoft has confirmed that pricing changes vary by product, with increases of up to 33% on certain licences depending on the SKU. 

Indicative global increases include: 

• Microsoft 365 Business Basic increasing by around 17% 

• Microsoft 365 Business Standard increasing by around 12% 

• Microsoft 365 E3 increasing by approximately 8% 

• Microsoft 365 E5 increasing by approximately 5% 

• Frontline F1 licences increasing by up to 33% 

Some plans, including Business Premium and selected Office 365 licences, are expected to remain unchanged. The exact impact for UK customers will depend on your current licences, contract type, and renewal date. 

Why Microsoft Is Increasing Microsoft 365 Prices 

Microsoft has positioned the July 2026 price increase as a reflection of the significant expansion of built-in capabilities across Microsoft 365 over recent years. 

In its official announcement, Advancing Microsoft 365: New capabilities and pricing update, Microsoft confirmed it has delivered more than 1,100 new features across Microsoft 365, security, Copilot, and SharePoint, with a strong emphasis on AI-driven productivity and security improvements. 

What New Value Is Being Added to Microsoft 365? 

AI-powered productivity with Copilot 

Microsoft is expanding AI functionality across Microsoft 365 through Copilot Chat, bringing secure AI assistance directly into applications such as Word, Excel, PowerPoint, Outlook, and OneNote. New Copilot capabilities will increasingly understand user context, including email and calendar data, and introduce Agent Mode, enabling more natural collaboration between users and AI. 

For UK businesses, this means faster document creation, improved insights, and reduced administrative overhead, all within a governed and secure environment. 

Stronger security included by default 

Microsoft is embedding more advanced security features into core licences. Enhancements include expanded email and collaboration protection through Microsoft Defender, improved malicious link detection, and additional safeguards across Teams and Exchange workloads. 

For many organisations, this reduces reliance on bolt-on security tools and improves baseline protection against phishing and malware. 

Improved endpoint management and resilience 

Microsoft 365 Enterprise plans will include enhanced endpoint management capabilities through Microsoft Intune, such as advanced analytics and remote support tools. These improvements provide IT teams with better visibility into device health, performance, and user experience. 

Microsoft has also continued to invest in the Windows Resiliency Initiative, helping organisations recover more quickly from system failures or security incidents. 

Security Copilot embedded into operations 

Microsoft has announced the rollout of Security Copilot agents across Defender, Entra ID, Intune, and Purview. These built-in agents support security teams by automating common tasks, surfacing insights faster, and helping organisations respond more effectively to threats. 

For UK organisations facing increasing cyber risk and compliance pressure, this represents a major shift towards more proactive, AI-assisted security operations. 

What You Should Do Now 

To minimise the impact of the Microsoft 365 price increase, SysGroup recommends that UK customers: 

• Review current Microsoft 365 licences and actual usage 

• Identify unused, duplicated, or misaligned subscriptions 

• Consider early renewal to secure current pricing 

• Ensure licences align with security, compliance, and productivity needs 

Early planning gives organisations greater control and avoids rushed decisions closer to renewal. 

 How SysGroup Can Help 

As a trusted Microsoft partner for UK organisations, SysGroup can support you with: 

• Microsoft 365 licence reviews and optimisation 

• Renewal planning and cost forecasting 

• Security and productivity alignment 

• Guidance on Copilot readiness and security capabilities 

• Access to up-to-date Microsoft pricing and promotions 

Our goal is to help you maximise value while controlling cost and risk. 

 

Final Note

The Microsoft 365 price increase in July 2026 is a significant change for UK businesses. However, it comes alongside meaningful improvements in AI-driven productivity, security protection, and endpoint resilience. 

Organisations that plan early can reduce cost impact, improve licensing efficiency, and ensure they are fully prepared for the changes ahead. 

If you would like a personalised review of how these updates affect your organisation, SysGroup is here to help. 

 

 Email us today: info@sysgroup.com