Microsoft 365 update · Effective 1 July 2026

New features are coming to Microsoft 365, and prices are changing.

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.

This is your notice of the change. Microsoft’s new pricing will be applied automatically at your next renewal.
1 July 2026

New pricing takes effect. The new features begin rolling out from June 2026.

More included

Advanced security, device management and Copilot Chat are now built into the core plans.

From your renewal

Your current pricing holds until your subscription renews. The new price applies from your next renewal date.

What Microsoft has announced

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.

What is now included in your plan

Capabilities being added across the most common plans, which you would otherwise buy separately.

Microsoft 365 Business plans

  • Copilot Chat with Word, Excel and PowerPoint agents
  • Protection against malicious links at the moment of the click
  • An extra 50GB of mailbox storage per user
  • Copilot Chat usage reporting

Microsoft 365 and Office 365 Enterprise (E3 and E5)

  • Microsoft Defender for Office 365 (Plan 1)
  • Intune Remote Help and Advanced Analytics
  • Intune Plan 2 device management
  • E5 adds Security Copilot, Cloud PKI and Endpoint Privilege Management

Frontline plans (F1 and F3)

  • Copilot Chat with agents
  • Copilot Chat usage reporting
  • Aligned security improvements across the suite

Standalone and security add-ons

  • Windows Enterprise: Quick Machine Recovery and post-quantum security
  • Enterprise Mobility + Security: Intune Remote Help, Advanced Analytics and Plan 2
  • Office 365 E1: link protection and Copilot Chat

Why prices are changing

Microsoft is adding capabilities to the standard plans that previously cost extra or were not available at all:

The plan you renew in 2026 does more than the one you bought two years ago.

Price changes by licence

Percentage increase for each licence, by term duration and billing plan, effective 1 July 2026.

License Term Duration Billing Plan Increase
Microsoft 365 Business BasicMonthlyMonthly+17.4%
YearlyAnnual+17.4%
YearlyMonthly+17.4%
Microsoft 365 Business StandardMonthlyMonthly+12.5%
YearlyAnnual+12.5%
YearlyMonthly+12.5%
Microsoft 365 Apps for businessMonthlyMonthly+21.0%
YearlyAnnual+21.0%
YearlyMonthly+20.9%
Microsoft 365 Apps for enterpriseMonthlyMonthly+17.1%
YearlyAnnual+17.1%
YearlyMonthly+17.1%
Office 365 E3MonthlyMonthly+13.1%
YearlyAnnual+13.1%
YearlyMonthly+13.1%
Office 365 E5MonthlyMonthly+7.9%
YearlyAnnual+7.9%
YearlyMonthly+7.9%
Microsoft 365 E3MonthlyMonthly+8.1%
YearlyAnnual+8.1%
YearlyMonthly+8.1%
Microsoft 365 E5MonthlyMonthly+5.3%
YearlyAnnual+5.3%
YearlyMonthly+5.3%
Microsoft 365 F1 (Frontline)MonthlyMonthly+32.7%
YearlyAnnual+32.9%
YearlyMonthly+33.0%
Microsoft 365 F3 (Frontline)MonthlyMonthly+24.2%
YearlyAnnual+24.2%
YearlyMonthly+24.3%
Enterprise Mobility + Security E3MonthlyMonthly+13.6%
YearlyAnnual+13.6%
YearlyMonthly+13.5%
Enterprise Mobility + Security E5MonthlyMonthly+10.3%
YearlyAnnual+10.3%
YearlyMonthly+10.4%
Microsoft Entra ID P1MonthlyMonthly+17.4%
YearlyAnnual+17.4%
YearlyMonthly+17.4%
Microsoft Entra ID P2MonthlyMonthly+11.6%
YearlyAnnual+11.6%
YearlyMonthly+11.6%
Windows 10/11 Enterprise E3MonthlyMonthly+9.3%
YearlyAnnual+9.3%
YearlyMonthly+9.3%
Windows 10/11 Enterprise E5MonthlyMonthly+16.2%
YearlyAnnual+16.2%
YearlyMonthly+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.

What we recommend alongside the new features

Microsoft’s new security tools are a real step up, but some gaps remain. These are the protections we recommend adding to close them.

24/7 monitoring

Huntress

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.

Your data, recoverable

Backup for Microsoft 365

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.

Web protection

DNS Filter

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.

Your team

Security Awareness Training

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.

Secure logins

Password Manager

Weak and reused passwords are behind most breaches. A password manager gives everyone strong, unique logins that are stored securely and simple to use.

Device control

Mobile Device Management

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.

Questions about the change?

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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