From 1st July 2026, Microsoft will be increasing the pricing on some Microsoft 365 licences.
If your business already relies on Microsoft 365 for email, Teams, Office applications, and cloud storage, these changes may affect you when your licences next renew.
For many organisations, this will naturally raise questions around budgeting and ongoing software costs. However, it should also prompt a much more important conversation.
Is your business getting the right level of value, productivity, and protection from Microsoft 365?
Because today, Microsoft 365 is no longer simply a set of office applications.
For most businesses, it’s where the organisation operates day to day.
- Emails
- Customer information
- Documents
- Teams conversations,
- Financial data
- Internal collaboration
Often all sit within the Microsoft 365 environment. As a result, reviewing licensing is no longer just a pricing exercise. It is a business operations and risk discussion.
Which Microsoft 365 Licences Are Changing?
Microsoft’s published UK pricing updates show increases across several Microsoft 365 and Office 365 plans from 1 July 2026.
Some licences are increasing significantly, while others are not currently shown as receiving a published suite price increase.
The figures below are based on annual subscriptions paid yearly and reflect the lowest published per-user pricing route shown on Microsoft’s UK pricing pages.
These changes will affect:
- New customers from 1st July 2026
- Existing customers at their next renewal after that date
Consider a 20-user business with a Microsoft 365 Business Standard subscription.
Prior to the price changes on 1st July 2026, before VAT this business would be paying an approximately £2,304 annually per year.
Subject to the estimated price changes, this businesses subscription costs per year before VAT would rise to roughly £2, 580.40.
Across the company, this would be an annual estimated increase of £276.40.
Why This Matters Beyond Pricing
While no business welcomes rising costs, the bigger issue is understanding what your organisation is actually receiving from Microsoft 365.
Many businesses use Microsoft 365 primarily for:
- Teams
- Office applications
- File storage
However, most organisations only use a fraction of the platform’s wider capabilities.
Features relating to:
- Security
- Device management
- Access control
- Productivity
- Collaboration
- Workflow efficiency
are often underused or not configured properly at all.
This means businesses can sometimes be paying for licences without fully benefiting from the platform itself.
The July 2026 pricing changes create a good opportunity to review whether your current Microsoft 365 setup is genuinely supporting the business as effectively as it could be.
The Reality Many Businesses Face
Many business owners still think about security in physical terms.
- You wouldn’t leave your office unlocked overnight.
- You wouldn’t leave confidential paperwork in the street.
- You wouldn’t hand strangers unrestricted access to your building.
Yet many businesses unknowingly create similar risks digitally every day.
- A lost laptop.
- A weak password.
- A stolen mobile phone.
- An employee clicking the wrong link.
- A former employee still having access to company systems.
These are now some of the most common causes of business data loss and cyber security incidents.
Unlike physical theft, these problems are often invisible until the damage has already happened.
Why Microsoft 365 Business Premium Deserves Attention
One particularly important point within Microsoft’s published pricing update is that Microsoft 365 Business Premium isn’t currently shown as receiving a suite price increase.
For many SMEs, this makes Business Premium worth closer attention.
A large number of businesses currently use Microsoft 365 Business Standard because it provides the core tools required for day to day work.
However, Business Premium adds a much stronger layer of business protection and management capabilities.
In practical terms, this can help businesses:
- Protect company data if devices are lost or stolen
- Reduce the risk of comprehensive accounts
- Secure remote and hybrid working
- Control access to business systems
- Better protect sensitive customer and financial data
- Support cyber security standards such as Cyber Essentials
For many organisations, this is becoming less of an upgrade and more of a sensible operational decision.
What Happens if a Device Is Lost or Stolen?
This remains one of the biggest concerns for modern businesses, especially with hybrid working now common across many industries.
If a laptop is lost or stolen, the potential exposure may include:
- Company emails
- Customer data
- Financial documents
- Saved passwords
- Shared company files
Without appropriate protections in place, the consequences can be serious.
Microsoft 365 Business Premium allows businesses to introduce additional security measures such as:
- Device encryption
- Multi factor authentication (MFA)
- Conditional access controls
- Remote access removal
- Security policies across company devices
The objective is simple:
- Reduce the likelihood of a lost device becoming a major business issue.
Productivity Matters Just As Much as Protection
Security is important, but productivity should also form part of the conversation.
Many businesses quietly lose efficiency through:
- Manual processes
- Inconsistent workflows
- Underused Microsoft 365 functionality
- Lack of automation
- Poor collaboration structure
Over time, these inefficiencies increase operational pressure and reduce profitability.
As businesses grow, these issues often become more visible.
The July 2026 pricing changes provide a sensible opportunity to review whether your current Microsoft 365 setup is helping your business operate efficiently as well as securely.
Because ultimately, the value of Microsoft 365 isn’t simply access to software.
It’s how effectively those tools support the way your business operates day to day.
Cyber Security Is No Longer Just a Large Business Problem
A common misconception is that cyber criminals only target large organisations.
In reality, small and medium sized businesses are often viewed as easier targets because protections are frequently less mature.
Automated attacks don’t care about the size of the organisation.
If systems are vulnerable, businesses can still become targets.
That is why cyber security should now be viewed in the same way as physical business protection.
Not because something has already happened.
Because protection is most valuable before it is needed.
Final Thoughts
The Microsoft 365 pricing changes coming into effect from 1 July 2026 will impact many businesses across the UK.
However, this shouldn’t simply be viewed as a licensing cost increase.
It’s also an opportunity to review:
- Whether your business is properly protected
- Whether your licenses remain suitable
- Whether your current setup is supporting productivity and long term growth
For many businesses, small improvements in structure, security, and usage can create meaningful operational benefits.
If you would like help reviewing your Microsoft 365 licences, understanding the July 2026 changes, or assessing whether your current setup is properly protecting your business, the team at Amshire would be happy to help.