Microsoft raised the price of most of its Microsoft 365 and Office 365 business plans from 1 July 2026. If you already have Microsoft 365, you stay on your current price until your next renewal after that date. For many businesses with annual licences, that renewal is still to come.
What changed for small business plans
Microsoft’s published list prices (in US dollars, per user per month) for its business plans with Teams:
| Item | Before 1 July 2026 | From 1 July 2026 |
|---|---|---|
| Business Basic | $6.00 | $7.00 |
| Business Standard | $12.50 | $14.00 |
| Business Premium | $22.00 | $22.00 |
Source: Microsoft
The enterprise plans rose too: for example, Microsoft 365 E3 went from $36 to $39. Teams on its own and Copilot weren’t part of this change.
Prices in pounds come from Microsoft’s UK price list, so the exact figures differ. We’ll always tell you your new price before it reaches your bill.
What you get for it
Alongside the higher prices, Microsoft added features to the business plans:
- 50GB more email storage on Business Basic, Standard and Premium
- Safe link checking (URL time-of-click protection) on Business Basic and Standard, which checks links in emails when someone clicks them, not just when the email arrives
- More Copilot Chat features, including awareness of your inbox and calendar
Is it time to look at Business Premium?
With Business Standard going up and Business Premium staying the same, the gap between them has narrowed. Business Premium adds security tools that matter for small businesses:
- Defender for Business, which protects your computers
- Intune, which lets you manage and wipe company laptops and phones
- Conditional Access, which can stop sign-ins from unexpected places
For many businesses that’s good value, especially if you’re working towards Cyber Essentials or your insurer asks about these things.
What to do
- Check when your licences renew. Annual licences can only be reduced within 7 days of renewing, so review numbers before then
- Remove licences for people who’ve left
- Compare Business Standard and Business Premium for your team before your renewal
How Zopi can help
We supply and manage Microsoft 365 licences and can tell you what your renewal will cost, tidy up unused licences and help you decide whether Business Premium is worth it. Call us on 0204 502 1288.
Sources
- Microsoft 365 pricing and packaging updates, Microsoft
