05 Jan Important Price Changes for Microsoft 365 and Newman Cloud
Important Price Changes for Microsoft 365 and Newman Cloud
Microsoft have announced they are increasing prices for commercial and non-profit Microsoft 365 suites (with and without Teams) from 1st July 2026. This price change will also affect Newman Cloud products in due course.
The increases reflect the enhanced value now included – such as AI-driven tools, advanced security, and improved management features – helping you work more efficiently and remain secure.
New pricing applies to all new and renewing customers from 1st July 2026. Existing New Commerce Experience (NCE) customers will see updated prices at their next renewal, on or after 1st July 2026 as part of your NCE Agreement. Most Microsoft 365 users will be renewing their licence commitment before this date so will not see price changes until NCE renewal in 2027. While the increase amount has been confirmed, the UK prices will be confirmed at least 30 days prior to 1st July 2026 once the FX rate has been set.
The table illustrates Microsoft 365 commercial suite prices, showing current vs. new list prices (USD, per user/month) effective July 1, 2026, as confirmed by Microsoft and the approximate UK pricing using an approximate exchange rate of $1 = £0.79) :
| SKU | Current | New | Change | Approx UK |
| Business Basic | $6.00 | $7.00 | +$1.00 (+16.7%) | £5.53 |
| Business Standard | $12.50 | $14.00 | +$1.50 (+12%) | £11.06 |
| Business Premium | $22.00 | $22.00 | No Change | £17.38 |
| Office 365 E1 | $10.00 | $10.00 | No Change | £7.90 |
| Office 365 E3 | $23.00 | $26.00 | +$3 (+13%) | £20.54 |
| Microsoft 365 E3 | $36.00 | $39.00 | +$3 (+8.3%) | £30.81 |
| Microsoft 365 E5 | $57.00 | $60.00 | +$3 (+5.3%) | £47.40 |
| Microsoft 365 F1 (Frontline) | $2.25 | $3.00 | +$0.75 (+33%) | £2.37 |
| Microsoft 365 F3 (Frontline) | $8.00 | $10.00 | +$2.00 (+25%) | £7.90 |
What’s Included with the Price Adjustment
Beginning July 1, 2026, Microsoft is bundling AI, security, and endpoint management features into many plans:
- Copilot Chat across Office apps
- Defender for Office 365 Plan 1 in E3 licenses
- URL scanning for lower-tier plans
- Intune enhancements integrated into E3/E5
