Microsoft 365 Prices Just Changed: What You Need to Know

If you renewed your Microsoft 365 subscription recently and noticed your costs have gone up, you are not alone. Microsoft increased prices across most of its business plans from 1 July 2026, with some tiers rising by as much as a third. Here is what changed, what you now get in return, and what to do before your next renewal.

What changed on 1 July 2026

Microsoft raised prices across its main Microsoft 365 business tiers from 1 July 2026. The increase varies by plan, but most organisations on month-to-month billing will see the new rate applied immediately. Customers on fixed annual contracts will see the change take effect at their next renewal.

You can check your current pricing and renewal date in the Microsoft 365 admin centre under Billing > Your Products. If you are unsure which plan you are on, that is also the place to find out.

What you get in return

Microsoft has not simply raised prices without adding anything. Several security tools that previously required paid add-on licences are now bundled into standard plans:

• Microsoft Defender for Office 365 Plan 1 is now included in Microsoft 365 Business plans. This is a set of tools that protect your email and Microsoft Teams messages from phishing attacks, malicious links, and dangerous file attachments. Previously, businesses either paid extra for this protection or went without it entirely.
• Intune Remote Help allows IT teams to assist staff with device problems more securely and with less friction.
• Cloud PKI simplifies how digital certificates are managed across a business’s devices, which is relevant mainly if you have a managed IT environment.

The inclusion of Defender for Office 365 Plan 1 is the most significant change for most businesses. Email remains the most common route attackers use to target organisations, and this tool adds real-time link checking and attachment scanning that goes well beyond a basic spam filter. If your business was not already paying for this separately, it is now available within your existing plan.

Why this matters to your business

The most direct effect is a higher bill. The precise increase depends on which plan you are on and how many licences you hold, but for a 20-person team the annual difference could easily run to several hundred pounds. For larger teams, the impact is proportionally greater.

There is, however, a positive case to be made. Businesses that actively use the newly bundled security tools may find the overall value has improved, even if the headline price has risen. If you were already paying for email security add-ons separately, you may now be able to remove those licences and offset some of the increase.

The broader message from Microsoft is clear: security tools are no longer optional extras. They are being built into the core product, and the price reflects that. From a cyber security perspective, this is the right direction of travel, even if the timing of an additional cost is unwelcome.

What we have already done for managed clients

If System Force manages your Microsoft 365 environment, we have already begun reviewing licence configurations across our managed clients. We are checking that:

• Defender for Office 365 Plan 1 is enabled and properly configured for all relevant accounts
• There are no unused or duplicated licences adding unnecessary cost
• Each client is on the right plan tier for the number of people and features they actually use

We will be in touch ahead of your renewal if there is anything to discuss or action. You do not need to do anything unless we contact you.

What to check if no one is managing this for you

If you look after your own Microsoft 365 setup, here are three things worth checking before your next renewal:

1. Find your renewal date and current price. Log in to the Microsoft 365 admin centre, go to Billing and then Your Products. Make a note of when your subscription renews so you are not caught off guard.
2. Remove unused licences. Licences assigned to former employees or duplicate roles are money being wasted every month. Remove them before renewal to bring your cost down.
3. Make sure Defender for Office 365 is switched on. If it is now included in your plan, verify that it is actually enabled and configured. Many businesses are paying for features they have never activated. Go to the Microsoft Defender portal and check that your email protection policies are active.

If you would like help reviewing your licences, enabling the new security features, or working out whether you are on the right plan, our managed IT services team can carry out a full licence review. We can also provide a one-off IT review for businesses that currently manage their own Microsoft 365 setup. Get in touch to arrange a conversation.

The bigger picture

Microsoft 365 pricing has increased several times in recent years, and this is unlikely to be the last time. The direction of travel is consistent: more security capability built into the platform, at a higher price.

For businesses using Microsoft 365, the practical response is to keep your licence configuration clean, make sure you are using the security features included in your plan, and work with an IT partner who can review and optimise your setup at each renewal. That way, even as prices rise, you remain confident you are getting full value for what you are spending. Our IT security team can also ensure your Microsoft 365 environment is properly secured, not just properly licensed.