Big Updates Coming to Microsoft 365 in 2026

Microsoft 365 pricing changes are coming in July 2026. Here’s what it means for your business.

July 2026 feels a long way off… right up until your next annual renewal rolls around and you realise you’ve sleep-walked into a cost increase you could’ve planned for.

Microsoft has announced a list price increase for a range of Microsoft 365 plans from 1st July 2026.

UK pricing is still to be confirmed (Microsoft publishes the updated list pricing in dollars), but there’s enough detail for us to estimate the impact using percentage changes.

What matters now is simple: understand what’s changing, what it could cost, and make sure you’re on the right licences before it lands.

What’s Changing?

From 1 July 2026, Microsoft 365 list prices are expected to increase by SKU. Based on the information currently available, here are the expected percentage increases:

• Microsoft 365 F1: +33%

• Microsoft 365 F3: +25%

• Business Basic: +16%

• Business Standard: +12%

• Business Premium: 0% (no increase expected)

• Office 365 E3: +13%

• Microsoft 365 E3: +8%

• Microsoft 365 E5: +5%

• Office 365 E1: 0% (no increase expected)

The headline: Frontline plans (F1/F3) are hit the hardest, Business plans are next, and Enterprise plans see smaller uplifts.

Why is Microsoft doing this?

Microsoft is continuing to add capability across the suite, particularly around security, management, compliance, and Copilot Chat.

The ‘why’ matters because it changes the conversation from ‘we’re paying more’ to ‘are we actually using what we’re paying for?’

If you’re on a plan that’s going up, the smart response isn’t panic, it’s a value-check:

– Are the right people on the right licence?

– Are you paying for capability you’re not using?

– Are there security gaps that could be closed with the right plan?

The bigger conversation: Standard vs Premium

One knock-on effect of these changes is that it narrows the gap between Business Standard and Business Premium.

So if you’re currently using Business Standard, now is a good moment to reassess whether Premium is the better fit, particularly if you’re trying to tighten security and control without bolting on lots of extra tools.

Business Premium is often considered for organisations that want stronger protection and management features built in, including things like:

– Conditional Access (control sign-ins based on risk, device, location, etc.)

– Stronger identity and access controls

– Device management to help standardise and protect endpoints

– Enhanced security capabilities that support day-to-day risk reduction

The key point: we’re not saying ‘upgrade for the sake of it’, but make sure your licence choice matches how your business actually operates, and what level of security and control you need.

What you should do now
(without overcomplicating it)

• Get clear on your current licence mix

Most businesses accumulate licences over time. Roles change, people leave, shared mailboxes get missed, and users get placed on whatever licence is available ‘just to get them going’.

A quick licensing sense-check often finds immediate wins.

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• Build a simple forecast for July 2026

Even before final UK pricing lands, you can model impact, using the percentage increases above, to give you a planning figure for:

– Budgeting and forecasting

– Estimating overall cost impact

– Deciding whether a plan change makes sense for certain user groups

How Flotek Can Help

We’re already helping partners get ahead of this with a practical approach:

– Licence review and optimisation: make sure you’re not paying for licences you don’t need.

– Impact modelling: forecast what the July 2026 changes mean for your users and plans.

– Plan-fit review: sense-check whether Standard vs Premium (or F plans) still matches how your teams actually work.

– Security and compliance alignment: ensure you’re getting real protection and value from the suite as it evolves.

The takeaway

This is a ‘quietly get ahead of it’ moment.

If you’d like a clear view of the impact on your business, get in touch and we can run a short Microsoft 365 review to give you:

• A clean view of your current licence estate.

• An estimate using the expected percentage changes.

• A set of options to reduce waste and make sure you’re on the right plan mix ahead of July 2026.

Speak to your Account Manager, or drop us a message and we’ll get it booked in.