Microsoft’s 2026 commercial price increase went live on July 1, 2026, raising list prices across most Microsoft 365 and Office 365 suites. The change applies globally, including across the UK, Ireland, and the Eurozone, and it lands on existing customers at their next renewal after that date, not immediately mid-term. This guide covers what’s changing, why Microsoft made the move, and what European IT and procurement teams should model before their next renewal.
Microsoft 365 2026 Prices for the UK and Europe (GBP and EUR)
Commercial list prices per user per month for UK (GBP) and Eurozone (EUR) markets, reflecting the July 1, 2026 increase. Pricing varies by agreement type; CSP and volume pricing may differ from the list rates below.
| SKU | Old Price (GBP) | New Price (GBP) | % Change (GBP) | Old Price (EUR) | New Price (EUR) | % Change (EUR) |
|---|---|---|---|---|---|---|
| Office 365 E1 | £7.70 | £7.70 | 0% | 8.68€ | 8.68€ | 0% |
| Office 365 E3 | £20.60 | £23.30 | 13% | 23.21€ | 26.26€ | 13% |
| Office 365 E5 | £34.10 | £36.80 | 8% | 38.42€ | 41.47€ | 8% |
| Microsoft 365 E3 | £31.00 | £33.50 | 8% | 34.93€ | 37.75€ | 8% |
| Microsoft 365 E5 | £49.00 | £51.60 | 5% | 55.22€ | 58.15€ | 5% |
| Office 365 E1 (no Teams) | £5.20 | £5.20 | 0% | 5.86€ | 5.86€ | 0% |
| Office 365 E3 (no Teams) | £14.00 | £16.70 | 19% | 15.78€ | 18.82€ | 19% |
| Office 365 E5 (no Teams) | £27.50 | £30.20 | 10% | 31.02€ | 34.03€ | 10% |
| Microsoft 365 E3 (no Teams) | £24.40 | £27.00 | 11% | 27.52€ | 30.42€ | 11% |
| Microsoft 365 E5 (no Teams) | £42.40 | £45.00 | 6% | 47.82€ | 50.71€ | 6% |
| Microsoft 365 F1 | £1.73 | £2.30 | 33% | 1.95€ | 2.59€ | 33% |
| Microsoft 365 F3 | £6.20 | £7.70 | 24% | 6.99€ | 8.68€ | 24% |
| Microsoft 365 F1 (no Teams) | £1.35 | £1.92 | 42% | 1.52€ | 2.16€ | 42% |
| Microsoft 365 F3 (no Teams) | £5.30 | £6.90 | 30% | 5.97€ | 7.78€ | 30% |
| Microsoft 365 Business Basic | £4.60 | £5.40 | 17% | 5.18€ | 6.09€ | 18% |
| Microsoft 365 Business Standard | £9.60 | £10.80 | 13% | 10.82€ | 12.17€ | 12% |
| Microsoft 365 Business Premium | £16.90 | £16.90 | 0% | 19.04€ | 19.04€ | 0% |
| Microsoft 365 Business Basic (no Teams) | £3.40 | £4.20 | 24% | 3.83€ | 4.73€ | 23% |
| Microsoft 365 Business Standard (no Teams) | £7.10 | £8.30 | 17% | 8.00€ | 9.35€ | 17% |
| Microsoft 365 Business Premium (no Teams) | £14.40 | £14.40 | 0% | 16.23€ | 16.23€ | 0% |
| Purview Suite | £9.20 | £9.20 | 0% | 10.37€ | 10.37€ | 0% |
| Windows E3 | £5.40 | £5.90 | 9% | 6.09€ | 6.65€ | 9% |
| Apps for Business | £8.10 | £9.80 | 21% | 9.13€ | 11.04€ | 21% |
| Enterprise Mobility + Security (EMS) E3 | £8.10 | £9.20 | 14% | 9.13€ | 10.37€ | 14% |
| Entra Plan 1 | £4.60 | £5.40 | 17% | 5.18€ | 6.09€ | 18% |
| Windows Enterprise (per device) | £11.80 | £12.80 | 8% | 13.30€ | 14.42€ | 8% |
| Defender Suite | £9.20 | £9.20 | 0% | 10.37€ | 10.37€ | 0% |
| Windows E5 | £9.90 | £11.50 | 16% | 11.16€ | 12.96€ | 16% |
| Microsoft 365 Apps | £11.70 | £13.70 | 17% | 13.18€ | 15.44€ | 17% |
| Enterprise Mobility + Security (EMS) E5 | £12.60 | £13.90 | 10% | 14.20€ | 15.66€ | 10% |
| Entra Plan 2 | £6.90 | £7.70 | 12% | 7.78€ | 8.68€ | 12% |
What’s Changing
The increases aren’t uniform. Business Premium and Office 365 E1 are staying flat, while everything else moves up, with the steepest percentage jumps hitting the lower-cost frontline plans rather than the flagship enterprise suites. Suites sold without Microsoft Teams, an option Microsoft reintroduced globally following EU regulatory pressure, see even sharper percentage increases because the absolute price gap between the with-Teams and without-Teams versions stays the same.
For European buyers, there’s a second layer: currency harmonization. Microsoft reviews GBP and EUR pricing against the US dollar roughly twice a year and adjusts local list prices independently of any global change. A UK or Eurozone renewal quote can therefore reflect both the July 2026 increase and whatever currency adjustment lands closest to that renewal date.
Why Microsoft Made the Change
Microsoft frames this as a value-and-price update rather than a price-only one. E3 now includes Defender for Office 365 Plan 1 and additional Intune capability; E5 adds Security Copilot capacity and advanced Intune management; Business plans gain expanded Copilot Chat access. The justification mirrors 2022’s increase: a large volume of new features shipped since the last price move, now being reflected in the license cost.
The Bigger Number for Enterprise Agreements
The July increase isn’t the only cost event on the table. Microsoft removed EA volume-tier discounts in late 2025, flattening large accounts to list pricing at their next renewal. For organizations that held those tiered discounts, losing them alongside the July increase can push the real renewal cost well above the published percentage, in some cases approaching 20 to 25 percent for large estates. Model your fully loaded renewal cost, not the headline percentage.
Considering a Move from EA to CSP
With EA volume-tier discounts gone, some of the traditional cases for staying on an Enterprise Agreement have weakened, and more European organizations are evaluating a move to Cloud Solution Provider (CSP) licensing at their next renewal. CSP doesn’t use the same tiered-discount structure EA did, so the July 2026 increase and any currency adjustment apply the same way regardless of agreement type, but CSP offers flexibility EA doesn’t, including the ability to true up or true down seat counts as headcount changes, monthly or annual billing instead of a fixed multi-year term, and no requirement to commit to a three-year spend forecast. For a European bank we worked with, moving from EA to CSP delivered 15 to 20 percent in annual licensing savings, cut support response time from one to two days down to minutes, and preserved three-year pricing protection despite the shift to a more flexible commercial model. If your EA renewal is approaching, it’s worth building in a long runway to plan the transition, checking common EA to CSP questions before you commit, and comparing a CSP quote against your EA renewal terms using a clear migration plan before you sign.
What to Do Before Renewal
The same levers that reduce cost at any renewal matter more now: right-size unused and duplicate licenses, cancel add-ons that overlap with newly bundled features like Defender or Intune, and model your plan mix against a higher baseline before signing. For enterprise customers, this is also the moment to weigh whether a Cloud Solution Provider (CSP) agreement offers more flexibility now that EA’s volume-discount advantage is gone.
Book your M365 licensing consultation to lock in cost-effective pricing. Our Microsoft-certified experts review your Microsoft 365 environment to validate licensing, seat utilization, and security, helping you strike the right balance between cost and capability. Request a Microsoft 365 licensing review, and we’ll assess your renewal against your actual seat count and region.
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