If your business uses Microsoft 365, whether it’s for emails, documents, spreadsheets or video calls, you need to know about this. Microsoft has confirmed that prices are going up from 1st July 2026, and it’ll affect the vast majority of UK businesses. Here’s what’s changing, what it means for you, and what you can do about it right now.
when is this happening?
1st July 2026 is the date. If you sign up to Microsoft 365 on or after that date, you’ll automatically pay the new higher price. If you’re already a customer, the new prices will kick in at your next renewal after that date.
⏰ The clock is ticking. If your subscription renews after 1st July, you’ll be moved onto the new pricing at that point, unless you take action before then. More on that below!
how much are prices going up?
It varies depending on what you’re currently paying for, but here’s a rough idea:
plan |
who typically uses it |
price increase |
|---|---|---|
| Basic business plan | Small teams needing email & Teams | ≈ 17% |
| Standard business plan | Most small-medium businesses | ≈ 12% |
| Premium business plan | Businesses needing extra security | No change |
| Enterprise plan | Larger organisations | ≈ 8% |
| Frontline worker plans | Retail, hospitality, field workers | Up to 33% |
🔍 Not sure which plan you’re on? Check your invoice or email your IT provider. They’ll tell you exactly what you’re paying for and what your increase will look like.
why is microsoft doing this?
Microsoft says the price rise reflects a significant investment in new features, over 11,000 of them, apparently. These include built-in AI tools (think smart assistants inside Word, Excel and Outlook), improved security features, and extra storage.
Whether your business will actually notice or use all of these new additions is, of course, another question entirely! But that’s Microsoft’s reasoning.
who does this affect?
Pretty much any UK business paying for Microsoft 365. That includes sole traders, small businesses, larger companies, charities, and nonprofits. If Microsoft 365 is part of how your business operates day-to-day, this is relevant to you.
The only good news? A small number of higher-tier plans are staying at their current price, which actually makes them better value than before compared to the plans that are going up.
what can you do about it?
Here’s the thing, you’re not completely powerless. There are a few simple steps you can take right now that could save you a decent amount of money:
🖥️ Renew Before 1st July 2026. This is the biggest one. If you renew your subscription before the deadline, you can lock in your current price for at least another full year, and in some cases up to three years. It’s one of the easiest ways to avoid the increase entirely, at least for now. Talk to your IT provider about this as soon as possible.
🖥️ Check You’re Not Paying for Things You Don’t Need. It’s surprisingly common for businesses to be paying for accounts that belong to people who left months ago, or tools that nobody actually uses. A quick review now could trim your costs before the new prices kick in. Your IT provider can help with this.
🖥️ Consider Whether Upgrading Makes Sense. Because the premium plan isn’t changing in price, but the standard plan is going up by 12%, the gap between the two has actually narrowed. For some businesses, upgrading to a higher plan now could give you more for your money. Worth a conversation with your IT provider!
🖥️ Talk to Your IT Provider. If you have an IT provider, now is the time to pick up the phone. They can review exactly what you’re on, what the increase will mean for your specific bill, and help you make the most of the time you have left before July. That’s exactly what they’re there for.
the bottom line
Don’t have an IT provider? Now might be the perfect time to think about getting one. Having a professional IT company in your corner isn’t just about fixing things when they go wrong, it’s about making sure you’re always on the right plan, paying the right price, and protected in the right way. Think of it as having an expert on your side, so you never have to figure this stuff out alone. Get in touch with Siarp today and let’s have a chat. We could even save you money!
