In December 2025, Microsoft confirmed a significant global price adjustment for Microsoft 365 effective 1st July 2026. For UK organisations already navigating a complex economic climate, these increases,driven by massive investments in Copilot AI and advanced security,could add thousands of pounds to annual IT budgets.
However, the “July 1st” deadline isn’t a cliff edge for everyone. By leveraging the Cloud Solution Provider (CSP) model, businesses have a strategic window to freeze current rates and bypass the hike entirely for the next 12 to 36 months.
The 2026 GBP Price increases for Microsoft 365
While Microsoft finalises “harmonised” GBP list prices in late May, the percentage increases are set. For an organisation with 200 users, the annual cost impact is substantial,especially for those relying on Frontline or Basic tiers.
Microsoft 365 2026 Price Impact (Estimated GBP)
| License Plan | Est. Current Price (User/Mo) | New Price (July 2026) | Monthly Increase (Per License) | Total Annual Hike (200 Users) |
| Business Basic | £4.90 | £5.75 | +£0.85 | +£2,040 |
| Business Standard | £10.30 | £11.55 | +£1.25 | +£3,000 |
| Microsoft 365 E3 | £33.10 | £35.85 | +£2.75 | +£6,600 |
| Microsoft 365 E5 | £52.40 | £55.15 | +£2.75 | +£6,600 |
| Frontline F1 | £1.90 | £2.55 | +£0.65 | +£1,560 |
| Frontline F3 | £6.20 | £7.75 | +£1.55 | +£3,720 |
| Business Premium | £18.10 | £18.10 | £0.00 |
Microsoft 365 Frontline price increase
The Frontline “Shock”: Historically the most affordable licenses, F1 and F3 are seeing the steepest percentage hikes (up to 33%). If your workforce relies heavily on frontline seats, acting before July is non-negotiable to avoid a massive budget spike.
How to Beat the Microsoft 365 Price Increase
The most effective way to mitigate these increases is through Price Protection. Under Microsoft’s New Commerce Experience (NCE), your price is locked for the duration of your commitment term.
- The June Renewal Strategy: If you renew your annual subscription on or before 30th June 2026, you legally lock in 2025/early-2026 pricing for the next 12 months. You won’t pay a penny of the new increase until July 2027.
- The 3-Year Lock-In: For high-stability licenses (like E3 or E5), Tier 1 CSPs like Bridgeall can facilitate 3-year terms. This secures your current rate until 2029, completely bypassing the 2026 hike and any subsequent mid-term adjustments.
- Strategic Upgrading to Business Premium: Since Business Premium is not increasing in price, the cost gap between “Standard” and “Premium” is at an all-time low. For a marginal difference, you gain Enterprise-grade security (Intune/Defender) that would cost far more as standalone bolt-ons.
3-Step Microsoft 365 Action Plan
To ensure your business is protected, follow this timeline:
- Step 1: Audit (Now): Conduct a Licensing Health Check. Identify “ghost” licenses (assigned but unused) and frontline workers who may be over-licensed.
- Step 2: Consolidate (Before May): Move monthly-flexibility seats (which carry a 20% premium) into annual commitments where headcount is stable.
- Step 3: Lock-In (By June 20th): Instruct your CSP to execute an early renewal. This “restarts” your 12-month clock at the current lower rate.
Free Microsoft 365 License Audit
Don’t wait for the July invoice to see the damage. As a Tier 1 Microsoft CSP, Bridgeall specialises in “Right-Sizing”,ensuring you only pay for what you need while maximising price protection. Get a free license review and Microsoft 365 license quote today or visit our Microsoft Licensing services.
