From 1 July 2026, Microsoft is adding security and AI capabilities to Microsoft 365 plans and updating its prices. This page explains what is changing, why, and what it means for your business.
New pricing takes effect. The new features begin rolling out from June 2026.
Advanced security, device management and Copilot Chat are now built into the core plans.
Your current pricing holds until your subscription renews. The new price applies from your next renewal date.
Microsoft is updating the pricing and packaging of its Microsoft 365 and Office 365 plans, covering the Business, Enterprise and Frontline suites and several standalone products.
Alongside the price changes, Microsoft is adding capabilities to the plans you already pay for, particularly around security, device management and AI. Standalone Teams and standalone Copilot are not part of this update.
Capabilities being added across the most common plans, which you would otherwise buy separately.
Microsoft is adding capabilities to the standard plans that previously cost extra or were not available at all:
Email threat protection, link checking at the moment of the click, and advanced device management move into the core plans.
Copilot Chat now understands your inbox and calendar, with agents for Word, Excel and PowerPoint included in the suites.
Business plans gain an extra 50GB of mailbox storage for every user.
Microsoft is also passing on higher cloud, energy and AI running costs across the UK market.
The plan you renew in 2026 does more than the one you bought two years ago.
Percentage increase for each licence, by term duration and billing plan, effective 1 July 2026.
| License | Term Duration | Billing Plan | Increase |
|---|---|---|---|
| Microsoft 365 Business Basic | Monthly | Monthly | +17.4% |
| Yearly | Annual | +17.4% | |
| Yearly | Monthly | +17.4% | |
| Microsoft 365 Business Standard | Monthly | Monthly | +12.5% |
| Yearly | Annual | +12.5% | |
| Yearly | Monthly | +12.5% | |
| Microsoft 365 Apps for business | Monthly | Monthly | +21.0% |
| Yearly | Annual | +21.0% | |
| Yearly | Monthly | +20.9% | |
| Microsoft 365 Apps for enterprise | Monthly | Monthly | +17.1% |
| Yearly | Annual | +17.1% | |
| Yearly | Monthly | +17.1% | |
| Office 365 E3 | Monthly | Monthly | +13.1% |
| Yearly | Annual | +13.1% | |
| Yearly | Monthly | +13.1% | |
| Office 365 E5 | Monthly | Monthly | +7.9% |
| Yearly | Annual | +7.9% | |
| Yearly | Monthly | +7.9% | |
| Microsoft 365 E3 | Monthly | Monthly | +8.1% |
| Yearly | Annual | +8.1% | |
| Yearly | Monthly | +8.1% | |
| Microsoft 365 E5 | Monthly | Monthly | +5.3% |
| Yearly | Annual | +5.3% | |
| Yearly | Monthly | +5.3% | |
| Microsoft 365 F1 (Frontline) | Monthly | Monthly | +32.7% |
| Yearly | Annual | +32.9% | |
| Yearly | Monthly | +33.0% | |
| Microsoft 365 F3 (Frontline) | Monthly | Monthly | +24.2% |
| Yearly | Annual | +24.2% | |
| Yearly | Monthly | +24.3% | |
| Enterprise Mobility + Security E3 | Monthly | Monthly | +13.6% |
| Yearly | Annual | +13.6% | |
| Yearly | Monthly | +13.5% | |
| Enterprise Mobility + Security E5 | Monthly | Monthly | +10.3% |
| Yearly | Annual | +10.3% | |
| Yearly | Monthly | +10.4% | |
| Microsoft Entra ID P1 | Monthly | Monthly | +17.4% |
| Yearly | Annual | +17.4% | |
| Yearly | Monthly | +17.4% | |
| Microsoft Entra ID P2 | Monthly | Monthly | +11.6% |
| Yearly | Annual | +11.6% | |
| Yearly | Monthly | +11.6% | |
| Windows 10/11 Enterprise E3 | Monthly | Monthly | +9.3% |
| Yearly | Annual | +9.3% | |
| Yearly | Monthly | +9.3% | |
| Windows 10/11 Enterprise E5 | Monthly | Monthly | +16.2% |
| Yearly | Annual | +16.2% | |
| Yearly | Monthly | +16.2% |
Figures are taken from Microsoft’s published 2026 UK price list for the standard commercial licence. Some plans, for example Microsoft 365 Business Premium and Office 365 E1, are not increasing. Your exact costs depend on your agreement type, term and quantity, and the new pricing is applied automatically from your next renewal.
Microsoft’s new security tools are a real step up, but some gaps remain. These are the protections we recommend adding to close them.
Microsoft Defender is now built in, but software on its own will not stop an attack. Huntress pairs round-the-clock monitoring with a security team wired into iceConnect’s incident response: threats are contained the instant they appear, then investigated and removed by expert human analysts.
Microsoft does not back up your data. A file, mailbox or Teams chat that is deleted or corrupted, by accident or on purpose, can be gone for good. iceConnect managed backups keep email, SharePoint, OneDrive and Teams in a separate system, monitored and managed by our techs.
Most attacks start with a click on a bad link. DNS Filter blocks malicious and phishing sites before they load, on any device, in the office or at home.
Human error is the most common way an attacker gets in. Short, regular training teaches your team to spot and report risky behaviour before it causes harm, and simulated phishing emails put them to the test.
Weak and reused passwords are behind most breaches. A password manager gives everyone strong, unique logins that are stored securely and simple to use.
Work happens on phones and laptops everywhere. Tied into the iceConnect helpdesk, mobile device management lets us secure and update company devices, and wipe business data from any that is lost or stolen.
If you would like to understand how the new pricing and features affect your plan, send us a message and we will get back to you.
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