Microsoft 365 Price Increases & Changes Coming July 2026: What UK Businesses Need to Know
Microsoft has announced a series of important updates to Microsoft 365 that will take effect in July 2026, including new AI‑driven capabilities, enhanced security features, and crucially global price increases across commercial subscriptions. At Deans Computer Services (DCS), we want to ensure our customers have clear, early visibility of these changes so they can plan budgets and licensing strategies effectively.
Commonly used subscriptions such as Business Basis and Business Standard are seeing increases of between 12 – 17.5%.
There is some good news!
CoPilot for business is now available as a bundle with some subscriptions and in some cases, our customers have seen a 50% discount against their original subscriptions for CoPilot, with CoPilot costing as little as 30p per day.
In addition, CoPilot is now available as a monthly subscription.
Annual Subscriptions!
Did you know that you can save 20% on your M365 subscriptions if you pay annually, and by doing so before July, you’ll avoid the price increase this year.
Why Are Prices Increasing?
Microsoft is significantly expanding the value of Microsoft 365 by adding new AI, security, and endpoint management capabilities across Business, Office, and Enterprise plans. These enhancements are designed to help organisations:
• Strengthen protection against advanced cyber threats
• Improve IT efficiency with integrated management tools
• Leverage AI to boost productivity across Word, Excel, PowerPoint, Outlook, Teams, and more
• Prepare for an increasingly AI‑driven workplace
According to Microsoft, more than 430 million people use Microsoft 365 apps globally, and over 90% of Fortune 500 companies now rely on Microsoft 365 Copilot. The platform continues to evolve rapidly, and the 2026 updates reflect Microsoft’s investment in delivering a more secure, AI‑powered future.
What New Capabilities Are Being Added?
Microsoft has confirmed several major enhancements coming to Microsoft 365 suites in 2026, including:
1. Expanded AI Capabilities
• Copilot Chat integrated across Word, Excel, PowerPoint, Outlook, and OneNote
• New “Agent Mode” for iterative document creation and workflow automation
• AI‑powered inbox and calendar understanding
2. Enhanced Security Features
• Microsoft Defender for Office 365 Plan 1 features added to Office 365 E3 and Microsoft 365 E3
• URL protection added to Office 365 E1, Business Basic, and Business Standard
• Security Copilot agents integrated into Defender, Entra, Intune, and Purview for Microsoft 365 E5 customers
3. Improved Endpoint Management
• Additional Intune capabilities added to Microsoft 365 E3 and E5, including:
• Intune Remote Help
• Intune Advanced Analytics
• Intune Plan 2
• For E5 customers
• Endpoint Privilege Management
• Enterprise Application Management
• Microsoft Cloud PKI
These additions are designed to help IT teams resolve issues faster, reduce risk, and maintain compliance in an increasingly complex digital environment.
What Do the Price Increases Mean for UK Customers?
Microsoft has confirmed that new commercial list prices will take effect globally on 1 July 2026, with local market adjustments applied in each region—including the UK.
Key points for UK organisations:
• Price increases will apply to all commercial Microsoft 365 and Office 365 suites that include Microsoft Teams.
• Suites without Teams will also increase by an equivalent value.
• Nonprofit pricing will rise in line with commercial pricing.
• Government cloud pricing is also being updated (though this applies only to public sector customers).
Microsoft has not yet published the UK‑specific list prices, but DCS will share these with customers as soon as they are released.
How DCS Will Support You
As your trusted IT partner, DCS will:
✔ Provide early guidance on the new UK pricing
We will notify all customers as soon as Microsoft releases the updated UK price lists.
✔ Review your current licensing to identify savings
Many organisations can reduce costs by consolidating licences, removing unused seats, or switching to more suitable plans.
✔ Help you plan ahead for July 2026
We can model the impact of the new pricing on your organisation and help you budget effectively.
✔ Support your adoption of new AI and security features
Our team can help you take advantage of the new capabilities included in your subscription.
What Should You Do Now?
We recommend the following steps:
• Book a licensing and IT review with DCS to ensure you’re on the most cost‑effective plan.
• Audit your current usage—many organisations pay for licences that are no longer needed.
• Plan for AI adoption—Copilot and the new AI features can significantly improve productivity when deployed strategically.
• Stay informed—we will continue to share updates as Microsoft releases more details.
Talk to DCS Today
If you’d like to understand how the 2026 Microsoft 365 price changes will affect your organisation—or if you want help optimising your licensing—our team is here to help.
📞 01937 541411
📧 Email [email protected]