Microsoft Pricing Updates July 2026
Microsoft has confirmed that pricing for many Microsoft 365 licences will increase from July 1st 2026. This is a global change that will also apply to UK customers.
If you are an existing Microsoft 365 customer, it’s important to understand what is changing, when it will impact you, and what options are available to manage or minimise the impact — particularly ahead of your next subscription renewal.
This article explains the changes in plain English and highlights a current promotional offer that may be of interest to organisations considering Microsoft 365 Copilot.
What is changing?
From July 1st 2026, Microsoft is increasing list prices for most Microsoft 365 Business, Enterprise, and Frontline licences. The increases typically range from 8% to over 30%, depending on the licence type.
Notably:
- Business Basic, Business Standard, Enterprise (E3/E5), and Frontline (F1/F3) licences are all affected
- Microsoft 365 Business Premium and Microsoft 365 E1 are not increasing in price
- These increases reflect Microsoft’s continued investment in:
- Built‑in security and compliance
- Expanded device management (Intune)
- AI capabilities, including Copilot features
For UK customers, the same percentage increases apply, with pricing converted to pounds sterling.
When will this affect you?
Importantly, the price increase does not apply immediately to existing subscriptions.
The new pricing will take effect at your next renewal date after 1 July 2026.
That means:
- If your subscription renews before 1 July 2026, your current pricing continues for the full term
- If your subscription renews on or after 1 July 2026, the new pricing will apply
- This applies whether you purchase licences directly from Microsoft or via a Cloud Solution Provider (CSP)
Understanding your renewal date is therefore key to knowing when the increase will affect you.
What can you do about it?
There are several practical options available, depending on your circumstances.
1. Consider an annual commitment (pre‑pay)
Where appropriate, switching from monthly rolling licences to an annual subscription (paid annually or monthly) can:
- Lock in current pricing before the July increase
- Provide cost certainty for the next 12 months
- Reduce the risk of incremental price rises during the year
This can be particularly valuable for organisations with stable headcount.
2. Review whether your current licences are still the right fit
This is a good opportunity to review your licence mix. For example:
- Some customers on Business Standard may now find Business Premium better value, given that:
- Business Standard pricing is increasing
- Business Premium pricing is not
- Business Premium includes Conditional Access, Intune, and Defender for Business
A licence review can often offset some - or all - of the increase through better alignment to actual usage.
3. Take advantage of the current Microsoft 365 Business Premium + Copilot offer
Microsoft is currently running a limited‑time promotional offer bundling Microsoft 365 Business Premium with Microsoft 365 Copilot for Business.
This offer provides:
- A combined licence that includes:
- Microsoft 365 Business Premium
- Copilot AI assistance within Word, Excel, Outlook, Teams, and other apps
- Significant discounted pricing compared to purchasing separately
- Annual commitment pricing that can be locked in before the July 2026 changes
The promotion is available for eligible organisations and is time‑limited, making it particularly relevant for customers already considering Copilot or planning a renewal.
You can view Microsoft’s official details here: https://www.microsoft.com/en-gb/microsoft-365/try-copilot/business
Why Microsoft 365 Business Premium stands out
It is worth highlighting that Business Premium is the only mainstream business licence not increasing in price.
This appears to be a deliberate move by Microsoft to position Business Premium as the default secure licence for small and mid-sized organisations, as it already includes many of the security and management features that are being expanded elsewhere.
For many organisations, this makes Business Premium an increasingly strong long‑term option.
What we recommend
If you are an existing Fuse CS customer, we recommend:
- Confirm your renewal date
- Review your current Microsoft 365 licence mix
- Consider annual commitment options ahead of July
- Evaluate whether the Business Premium + Copilot bundle makes sense for your organisation
We’re happy to guide you through these options and help you make an informed decision based on your environment, usage, and budget.
Need advice?
If you’d like us to:
- Check when your pricing will change
- Review your licences
- Explain Copilot in more detail
- Look at annual or bundled options
Please get in touch with your Fuse CS contact or drop us a message - we’re here to help you stay secure, productive, and cost‑effective.
About the author
Fuse is a Microsoft Partner, based in Northampton. We help organisations of all sizes to maximise IT efficiencies through the use of Microsoft cloud computing solutions.
