From 1 July 2026, Microsoft is increasing UK list prices across several Microsoft 365 plans on annual commitment terms. If your business renews licensing around this time, it’s worth understanding exactly what’s changing before your next invoice arrives.

Business Basic is rising by around 17%, and Business Standard by around 12%. Business Premium, by contrast, is staying flat at its current price. That’s a meaningful shift in the value equation: the gap between Standard and Premium narrows considerably, making the jump to Premium’s extra security features look a lot more affordable than it used to.

For businesses still on Basic or Standard, this is a good moment to revisit whether your current plan still fits. Basic’s web-only Office apps are fine for light users, but anyone doing serious Excel work, complex documents, or relying on desktop Outlook will find Standard or Premium a better fit regardless of the price change. And for businesses handling client data, remote workers, or anything touching compliance, Premium’s built-in security (Defender for Business, Conditional Access, device management) often works out cheaper than bolting equivalent third-party tools onto a cheaper plan.

If you’re currently under an annual commitment, your renewal date determines when the new pricing applies. Renewing before 30 June 2026 locks in current rates for another term, which is worth factoring into any renewal conversations happening now.

Whatever plan you’re on, this is a sensible trigger to review actual usage against what you’re paying for. Licensing audits are quick, and it’s common to find unused or misallocated licences that more than offset a price increase once cleaned up.

If you’d like a hand reviewing your current Microsoft 365 licensing ahead of the July changes, get in touch and we’ll talk you through your options.