In December 2025, Microsoft confirmed that it will increase the prices of its commercial Microsoft 365 and Office 365 subscription plans, with the changes set to take effect on 1st July 2026.
These price adjustments will apply globally to most commercial plans, as Microsoft continue their investment in adding new capabilities – particularly in the areas of AI, security, and management tools. Coming enhancements include expanded integrations like Copilot Chat and advanced threat protection features, which Microsoft says help organisations stay productive and secure.
Microsoft has provided this advance notice to help organisations plan for budget changes and to consider renewal timing. Customers renewing before July 2026 may have an opportunity to lock in current pricing for their next term.
What can you do
Take time to review your licences to ensure you’re not paying for unused subscriptions that can be cancelled. It’s common for licences to remain active after staff have left the organisation or changed roles, which can result in unnecessary ongoing costs.
Carry out a full licence audit to make sure employees are assigned the licences they genuinely need to do their jobs – and no more than that. Over time, it’s easy for users to be given higher-tier licences or additional features that made sense at the time but are no longer required.
Where licences are on a monthly commitment but are needed long-term, consider switching them to an annual agreement before the new pricing takes effect.
Finally, plan ahead for any additional licence requirements. If you know you’ll need new licences in the near future, purchasing them before the price increase could help reduce costs.
Final thoughts
Managing Microsoft 365 licences can quickly become complex as organisations grow and change. Without regular reviews, it’s easy to end up paying for licences or features that are no longer needed, especially as roles evolve or staff move on.
If you’d like support auditing your Microsoft 365 licences and identifying opportunities to reduce costs while ensuring users still have the tools they need, we’re here to help. Contact us to arrange a conversation with one of our specialists, who can review your current setup and provide clear, practical recommendations before the price increase takes effect in July.