Microsoft has confirmed that pricing across its Microsoft 365 commercial plans will increase from 1 July 2026. Alongside that, the company is introducing new licence bundles that include Microsoft Copilot features as standard.
The changes affect nearly all Microsoft 365 tiers used by UK businesses, including Business Premium, E3, and E5 plans. Whether you’re a small team or a larger SME, you’ll want to take note now to avoid last-minute surprises.
The 2026 update involves two major shifts:
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Prices are increasing across most Microsoft 365 licences that include Microsoft Teams
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New licences are being released that combine core Microsoft 365 features with Copilot built in
New Microsoft 365 Copilot bundles explained
Until now, Microsoft 365 Copilot has been sold as an add-on licence, often costing around £25–£30 per user/month on top of your base subscription. From mid-2026, Microsoft will launch bundled Copilot plans that integrate these features directly:
For example:
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Microsoft 365 Business Premium with Copilot
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Microsoft 365 E3 with Copilot
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Microsoft 365 E5 with Copilot (replacing current E5 + Copilot add-on setup)
These bundles will include:
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Copilot Chat in Word, Excel, PowerPoint, Outlook and Teams
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Agent Mode for interactive workflows and content generation
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Enterprise-grade controls to manage Copilot features securely
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Security and compliance features to support regulated industries
The bundled licences aim to simplify purchasing and better align Copilot features with the licences most businesses are already using.
How much will they cost?
Microsoft hasn’t published UK-specific pricing yet. However, global pricing documents suggest the new Copilot bundles will be more cost-effective than buying a separate base plan plus the £30/month Copilot add-on.
Still, they’ll be noticeably more expensive than today’s standard plans without Copilot. Here’s what we expect in relative terms:
| Plan | Current typical cost | Expected cost with Copilot (est.) |
|---|---|---|
| Microsoft 365 Business Premium | £18–£20 | £35–£40 |
| Microsoft 365 E3 | £30–£33 | £50–£55 |
| Microsoft 365 E5 | £50+ | £65+ |
Final pricing will vary by region and currency.
Do you need Copilot?
Microsoft is investing heavily in AI, but the decision to adopt Copilot should be based on real business need, not hype.
Ask yourself:
- Will your team use AI to save time or increase productivity?
- Do you already rely on Word, Excel or Teams for core operations?
- Is data privacy or user control important in your sector?
If you’re unsure, we recommend running a trial with Copilot add-ons before committing to the full Copilot bundle. You can then upgrade to the new bundled plans in 2026 if the value is clear.
What should businesses do now?
We’re advising all clients to take these five steps in 2025:
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Review your current Microsoft 365 setup
- Identify any unused or misallocated licences.
- Check if Copilot is already in use and how it’s performing.
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Evaluate Copilot in real-world use
- Copilot isn’t just a chatbot – it can automate tasks, generate content, summarise documents, and reduce admin. But it only works if your staff use it.
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Compare plan options for 2026
- Speak to your account manager or IT provider (like us) about whether to stick with your current plan, move to a Copilot bundle, or scale back.
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Budget for higher costs
- Even without Copilot, licence prices are increasing from July 2026. Build this into your IT and ops budgeting now.
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Plan licence renewals carefully
- Timing matters. If your renewal hits just before 1 July 2026, you may secure the old pricing for a full year.
Have a chat with our team on how you can best utilise your Microsoft licenses, reach out to our team at info@nofussit.co.uk or call us on +443300577449.
