Microsoft 365 prices are changing in 2026 - is the smarter upgrade worth it?

If your business runs on Microsoft 365, there’s a change coming that’s worth a few minutes of your attention. From 1 July 2026, the Microsoft 365 price increase takes effect and Business Standard is going up by 12%.

At the same time, Business Premium - the tier most people assume is the expensive one - isn’t changing at all. Its price is frozen.

That combination raises an interesting question for business owners across Leicestershire, Nottinghamshire and Derbyshire: if the cheaper plan is getting dearer and the dearer plan is standing still, is it time to make the smarter upgrade?

Here’s a plain-English look at what’s changing, what you actually get for your money, and how to decide.

What’s actually changing in July 2026

Microsoft announced a global pricing update in December 2025, and it lands on 1 July 2026. The important detail for most businesses: existing customers move to the new price at their next renewal after that date - so the timing of your renewal really matters.

Here’s how the core business plans compare:

Figures are indicative UK pricing, ex VAT, on an annual plan. Microsoft confirms the percentage changes; exact GBP rates can vary by billing model and exchange rate, so confirm your own numbers at renewal.

The detail most businesses miss - the gap is closing

With Standard rising and Premium frozen, the price difference between the two plans is now the narrowest it has been. The step up to Premium used to feel like a big jump. After July, it’s a noticeably smaller one.

Plenty of people in the industry read this as deliberate - Microsoft gently nudging businesses towards the more secure, better-equipped tier. Whatever the reasoning, the practical effect is the same: the extra cost of getting Premium’s full security toolkit is smaller than it used to be.

Business Standard vs Business Premium - what you actually get

For everyday work, the two plans feel identical. Both give you the same productivity tools, so your team won’t notice a difference opening Outlook or Teams in the morning.

The real difference is security and control. Here’s the comparison that matters:

In short: Standard keeps your team productive. Premium keeps your team productive and protected.

So, is it worth upgrading?

For some businesses, yes. For others, no. It comes down to what you do and what you’re already paying for elsewhere.

The case for Premium is strong if you:

•     Handle sensitive or regulated client data - the norm for accountants, insurance firms, financial and professional services.

•     Have hybrid or remote staff, or people using their own laptops and phones for work.

•     Are working towards Cyber Essentials, or need to satisfy a cyber-insurance requirement.

There’s also a value angle that often gets missed. If you already pay separately for antivirus, device management or email security, Premium can replace several of those tools at once. So the real comparison isn’t Standard versus Premium - it’s Premium versus Standard-plus-a-stack-of-bolt-ons. Run those numbers and Premium frequently comes out level or cheaper, with fewer suppliers to manage.

When staying on Standard makes sense: if your team mainly lives in email and Teams on devices already managed through another platform, Standard - or even a right-sized mix that puts some roles on Basic - may be plenty.

Not sure which plan fits? Get in touch and we can look at your options.

Before you do anything, right-size what you’ve got

The smartest first move usually isn’t upgrading - it’s auditing. Most businesses pay for more licences than they use. Industry research suggests the average small or mid-sized business carries 10–15% unused Microsoft 365 seats: leavers who still hold a licence, shared mailboxes with a full seat attached, or people sitting on a tier they don’t need.

Every unused seat gets a little more expensive after July, so trimming the waste is the fastest way to offset the increase and it’s exactly the kind of housekeeping a good IT partner should be doing for you anyway.

Three things to do before your renewal

1. Find your renewal date. If it falls before the increase reaches you, you may be able to lock in current pricing for the term. Early renewal does reset your commitment, so it’s worth a quick conversation rather than a knee-jerk decision.

2. Audit your licences. Strip out unused seats and move people onto the right tier for how they actually work.

3. Model Standard versus Premium properly - including the standalone tools Premium could replace. That’s where the smarter upgrade either makes sense or it doesn’t.

The bottom line

The July 2026 changes aren’t only a price rise - they’re a prompt to review value. With Standard climbing and Premium frozen, the upgrade is more attractive than it’s been in years for businesses that take security seriously. But the right answer always starts with knowing what you’re paying for today.

If you’d like a hand making sense of it, that’s exactly what we do.

Book a free 15-minute, no-jargon chat. We’ll check your renewal date, flag any wasted spend, and tell you honestly whether the upgrade is worth it for you. Talk to our team.