Act now to stay ahead of Microsoft 365 changes
As a Microsoft partner, Wavenet can help you move quickly and make sure everything is set up correctly before the deadline changes
Microsoft has confirmed a Microsoft 365 price increase from 1 July 2026, impacting businesses across the UK using Microsoft 365, Office 365, EMS, and Entra ID licences.
For organisations with large numbers of users, this change could add thousands to annual IT costs.
The good news, you can still lock in current pricing and avoid the increase for up to 12 months but only if you act before 30 June 2026.
Use the Microsoft 365 savings calculator to calculate your exact savings.
What is the Microsoft 365 price increase in July 2026?
Microsoft is introducing pricing increases across:
- Microsoft 365 Business plans
- Enterprise plans (E3, E5)
- Office 365
- Enterprise Mobility + Security (EMS)
- Microsoft Entra ID
This follows previous adjustments in 2023 and reflects Microsoft’s continued investment in AI, Copilot, and cloud services.
Full Microsoft 365 pricing changes (UK)
Below is the complete breakdown of Microsoft 365 price increases effective July 2026:
| Plan | Current price | New price (July 2026) | Increase | % Change |
| EMS E3 | £8.51 | £9.62 | £1.11 | 13% |
| EMS E5 | £13.23 | £14.55 | £1.32 | 10% |
| Business Basic | £4.83 | £5.60 | £0.77 | 16% |
| Business Basic (no Teams) | £3.57 | £4.39 | £0.82 | 23% |
| Business Standard | £10.08 | £11.29 | £1.21 | 12% |
| Business Standard (no Teams) | £7.46 | £8.65 | £1.19 | 16% |
| Microsoft 365 E3 | £32.55 | £36.78 | £4.23 | 13% |
| Microsoft 365 E3 (no Teams) | £25.62 | £29.21 | £3.59 | 14% |
| Microsoft 365 E5 | £51.45 | £54.02 | £2.57 | 5% |
| Microsoft 365 E5 (no Teams) | £44.52 | £47.19 | £2.67 | 6% |
| Microsoft 365 F1 | £1.82 | £2.42 | £0.60 | 33% |
| Microsoft 365 F1 (no Teams) | £1.42 | £2.03 | £0.61 | 43% |
| Microsoft 365 F3 | £6.51 | £8.14 | £1.63 | 25% |
| Microsoft 365 F3 (no Teams) | £5.57 | £7.19 | £1.62 | 29% |
| Entra ID P1 | £4.83 | £5.60 | £0.77 | 16% |
| Entra ID P2 | £7.25 | £8.48 | £1.23 | 17% |
| Office 365 E3 | £21.63 | £23.36 | £1.73 | 8% |
| Office 365 E3 (no Teams) | £14.70 | £16.32 | £1.62 | 11% |
| Office 365 E5 | £35.81 | £38.67 | £2.86 | 8% |
| Office 365 E5 (no Teams) | £28.88 | £31.77 | £2.89 | 10% |
No change: Microsoft 365 Business Premium remains unchanged.
How much will the Microsoft 365 price increase cost your business?
Even small monthly increases scale quickly across users.
Example cost increases:
- 200 Business Standard licences +£2,904/year
- 500 Microsoft 365 E3 licences +£25,380/year
- 1,000 Microsoft 365 E5 licences +£30,840/year
Use the Microsoft 365 savings calculator to get your exact figure.
How to avoid the Microsoft 365 price increase in 2026
There is a simple strategy to lock current pricing.
The "single license" method
Microsoft pricing is set when your subscription is created,
Steps:
- Before 30 June 2026 - buy 1 licence of your plan
- Keep your current subscription running
- Before your old renewal - set to cancel at subscription end and add the expiring licence quantity to the new subscription
- Result - All licences use pre-increase pricing
Why this works:
- Pricing is fixed at subscription creation
- New licences inherit the same rate
Microsoft 365 saving calculator (UK businesses)
Your savings depend on:
- Number of licences
- Plan type
- Renewal timing
Calculate your savings instantly
Why are Microsoft increasing prices?
1. AI and Copilot investment
Microsoft is embedding AI across its ecosystem.
2. Currency fluctuations
- Pricing tied to USD
- Exchange rate impacts UK customers
Microsoft 365 cost optimisation strategy
With repeated price increases, businesses should:
- Audit licences regularly
- Remove unused users
- Optimise licence mix
- Plan renewals strategically
What happens if you miss the deadline?
After 30 June 2026:
- New subscriptions = higher pricing
- Renewals = price increase applied
- No way to lock old pricing
These 3 simple steps can help you save time and money:
The deadline is 30 June 2026. Here's your action plan:
- Calculate your saving using our free Microsoft 365 savings calculator it takes under a minute.
- Decide whether to act based on your licence count, plan type, and renewal date.
- Contact us if you want help setting up the new subscription correctly and managing the transition without disruption.
As a Microsoft partner, we can help you move quickly and make sure everything is set up correctly before the deadline. Get in touch with our team today.
Frequently asked questions:
When does the Microsoft 365 price increase take effect?
The new prices take effect from 1 July 2026. Any new subscription created on or after this date will be charged at the higher rates. Subscriptions created before 30 June 2026 will retain current pricing for the duration of their annual term.
Does the price increase affect existing subscriptions immediately?
No. If you're already on an annual subscription, the increase will apply at your next renewal date after 1 July 2026. However, any new licences or new subscriptions created after 1 July will be at the new higher price, is why acting before the deadline matters.
How much are Microsoft 365 prices increasing?
Increases vary by plan, ranging from 5% on Microsoft 365 E5 to 43% on Microsoft 365 F1 (no Teams). See the full table above for a breakdown of every affected plan, including the exact price before and after July 2026.
What happens if I miss the 30 June 2026 deadline?
If you don't act before 30 June 2026, any new subscription you create will be at the new higher prices. Your existing subscription will continue at its current price until its next renewal date, at which point the new pricing will apply. There's no way to retroactively lock in the old pricing after the deadline has passed.
Can Wavenet help me before the deadline?
Yes. As a Microsoft partner, Wavenet can help you create the new subscription, manage the licence migration, and make sure everything is timed correctly to avoid any disruption to your users. Contact us as soon as possible - the deadline is approaching fast.
