Microsoft 365 prices change on 1 July — what to check before they do

Microsoft has confirmed a pricing update across Microsoft 365 that takes effect on 1 July 2026. For most small and medium businesses the practical change is straightforward, but it's worth understanding what's moving so you're not surprised by your next renewal.

Copilot becomes part of the plan, not an add-on

The main shift is that the AI assistant, Copilot, is being folded into permanent versions of the Microsoft 365 Business Standard and Business Premium plans, rather than sold separately as a promotion. That removes some of the friction around buying Copilot, but it also means the all-in plan prices are being reset to new list figures. If you've been on a promotional rate, that's the part to check.

Some useful additions come with it

It isn't only a price line. The update brings practical improvements: more mailbox storage on the Basic and Standard plans, extra protection in Outlook that checks links at the moment you click them, and Copilot Chat gaining awareness of your inbox and calendar so it's more useful day to day. For teams that already lean on Microsoft 365, that's real value, not just a higher number.

What to do before 1 July

Two things. First, look at what licences you're actually on and what you're paying, so the change doesn't land as a surprise. Second, decide whether Copilot is right for your team before paying for it across the board. It pays back fast for people who spend their day writing, summarising and searching, and far less for hands-on or operational roles. Buying it where it helps beats buying it everywhere on principle.