Microsoft has announced a global pricing update, coming into effect for new purchases and renewals from 1 July 2026. 

For many businesses, this means higher licence costs – but it also creates opportunities to review, optimise, and in some cases, reduce overall spend. 

Microsoft 365 pricing – what’s changing 

From July, the prices of a number of Microsoft 365 products and SKUs will increase from between 5-15% depending on the type of licence, however, not all plans are increasing.  

Notable exceptions include: 

• Business Premium  

• Office 365 E1 

You can check which of your licences will be affected, as well as SKUs that will remain unchanged in Microsoft's updated pricing list. If you’ll be impacted, it’s not too late to act. If you renew ahead of 1 July, you can lock in your current rates for up to three years. 

Why are Microsoft 365 prices increasing 

While the upcoming price changes may come as a surprise, the additional cost is reflected in features. For example, Microsoft 365 E5 now includes advanced security, compliance and identity protection capabilities, that previously you may have paid for separately. 

If you are currently on E3 and pay for add-ons, moving to E5 can simplify your licensing and reduce overall spend, while strengthening security.  

This makes now a good time to reassess whether your current licences still make sense. Speak to our team to discuss your options, or review your opportunities to upgrade. 

Watch our summary 

Our Microsoft 365 Specialist has broken down the Microsoft 365 pricing update, what’s changing, and the opportunities to look out for. Find out what you can do: