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Microsoft 365 Prices Are Going Up in July

Microsoft 365 prices are rising in July, but there's more room to manage it than most businesses realise. Callum Hurst, Client Account Manager at 1-Fix, explains what's changing, when it actually hits you, and what we can do together before your renewal comes around.

Microsoft 365 Prices Are Going Up in July

I've had a lot of conversations with clients over the past few weeks about this, so I wanted to put something together that gives you a clear picture of what's happening, when it affects you, and what we can do about it together.

So, what's actually happening?

From the 1st of July 2026, Microsoft is raising the price of most of its 365 business plans. We're talking somewhere in the region of 12–17% for the small business plans most of our clients are on. It's the first increase since 2022, and it's hitting every business on Microsoft 365, not just ours.

The one thing worth noting is that Microsoft is also adding features alongside the rise. More email storage, better protection against scam emails, and some AI tools through Copilot. So the plans are getting more, not just more expensive. Whether that justifies the increase is a fair debate, but it's worth knowing.

When does the Microsoft Price Rise come into effect?

This is the bit most people get confused about, so I want to be really clear. The price change kicks in at your renewal, not on 1st July. If your renewal falls before July, nothing changes until the renewal after that. You're protected until your contract comes up.

That gives us time to plan, and that's exactly what I want to use it for.

What can we actually do about it?

Here's how I typically approach it with clients:

• Licence review. This is the first thing I do for every client before a renewal. You'd be surprised how many businesses are paying for licences that belong to people who left six months ago, or seats that were set up for a project that's long finished. Clearing those out before the price goes up can cover a big chunk of the increase, and in some cases, clients end up paying less than they do now.

• Plan review. Are you on the right plan for how your business actually works today? This is worth checking, because the price change shifts the value equation on some plans significantly.

• Looking at Business Premium. This one's worth a separate mention (see below).

Is Business Premium actually worth it now?

Here's something I find genuinely interesting about this particular price change. Microsoft is keeping Business Premium at its current price while Standard goes up. So the gap between the two plans, which used to be quite significant for a lot of small businesses, is now the smallest it's ever been.

Premium isn't just a more expensive version of the same thing. It comes with a full security and device management package built in, the stuff that protects against ransomware on your actual computers (not just email), lets us manage and lock down your team's laptops and phones, and adds stronger sign-in so a stolen password alone can't get someone into your systems.

For businesses that hold client data, have people working remotely on laptops, or have just been thinking about getting more serious about security, this is worth a proper conversation. I'm not going to suggest it to everyone, but if it fits your situation, I'll tell you.

You don't need to do anything right now

That's the main message, honestly. There's nothing urgent today. I'll be in touch before your renewal with your exact numbers, what I'd recommend, and what we can do to keep costs as low as possible.

But if you've got questions in the meantime, or you'd rather not wait and just want to talk it through now, just give me a shout. That's what I'm here for.