Why are Microsoft 365 prices going up, and how can we reduce the cost?

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Last updated: 8 November 2026

The short answer

Microsoft raised prices on several Microsoft 365 plans from 1 July 2026, applied at your next renewal. Reports put Business Standard up by around 12%, while Business Premium is reported unchanged. You cannot stop the rise, but most businesses can reduce the bill.

What changed

The increase applies to licences at renewal on or after 1 July 2026. Reported rises vary by plan: roughly 12% for Business Standard, more for Business Basic and Frontline, and little or none for Business Premium. UK figures differ between sources, so check the current price list with your provider before budgeting.

Ways to reduce the bill

  • Audit licences. Look for leavers, duplicate plans and licences on shared mailboxes.
  • Match plan to role. Some staff suit a lighter plan, while others need Business Premium.
  • Use what you already pay for. Some security features are in your plan but switched off.
  • Compare annual and monthly terms. Annual commitments usually cost less but lock you in.

Ask your provider the right questions

Find out how much of any rise is passed on, when it takes effect, and whether a different plan mix would cost less for the same protection.

Quick answers

Do all Microsoft 365 plans cost more?

No. Reports differ by plan, and Business Premium has been reported as unchanged. Check the plans you actually use.

Can we avoid the rise?

Not for licences at renewal, but you can reduce the total by removing unused licences and choosing the right plan for each group.

ABCOM offers a free Microsoft 365 licence review. Talk to us.

Talk to ABCOM

Related answers and guides

Sources and further reading

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