Microsoft introduced a significant update to commercial Microsoft 365 pricing on 1st July 2026. While many of the most widely used licences have increased in price, not every Microsoft 365 subscription has been affected. Microsoft has also added new features and capabilities to several plans as part of the update.
Understanding which licences have changed is important when reviewing your Microsoft 365 costs, particularly ahead of renewals.
Which licences have changed?
The table below summarises some of the key commercial licences affected by the July 2026 changes. The percentage increases are based on Microsoft’s published global pricing changes; actual UK pricing can vary depending on the licence variant, currency, contract and whether Teams is included.
| Licence | Price increase |
|---|---|
| Microsoft 365 Business Basic | 16% |
| Microsoft 365 Business Standard | 12% |
| Microsoft 365 Business Premium | 0% |
| Microsoft 365 E3 | 8% |
| Microsoft 365 E5 | 5% |
| Office 365 E3 | 13% |
| Office 365 E5 | 8% |
| Microsoft 365 F1 | 33% |
| Microsoft 365 F3 | 25% |
| Microsoft 365 Apps | 17% |
| Apps for Business | 21% |
| EMS E3 | 13% |
| EMS E5 | 10% |
| Entra ID Plan 1 | 16% |
| Entra ID Plan 2 | 11% |
| Windows E3 | 15% |
| Windows E5 | 9% |
| Windows Enterprise | 31% |
These changes cover a broad range of Microsoft 365, Office 365, security, identity, device management and frontline licences.
Which licences remain the same?
There are some notable exceptions. Microsoft 365 Business Premium hasn’t increased in price, despite receiving additional functionality as part of the wider update. Standalone Microsoft Teams and standalone Microsoft Copilot licences are also excluded from this particular round of increases.
Office 365 E1 is another notable licence that remains unchanged, as well as Education plans. Non-profit licensing is affected by the price increases.
What should you do?
The July changes make it particularly important to review your Microsoft licensing before renewing your existing subscriptions. An audit can identify unused licences, users who may be on the wrong plan, and opportunities to consolidate or move to a more appropriate licence.
For example, organisations using Business Standard may want to consider whether Business Premium now offers better value, particularly where stronger security and device management are required.
How can we help
If you’re unsure how the July 2026 changes affect your organisation, we can review your Microsoft 365 licences and help identify opportunities to optimise your costs. Contact us here to arrange a free licensing audit.