Why are my Microsoft 365 costs increasing?

Microsoft have announced that they will be increasing their costs across all cloud products by approximately 9% as of the 1st of April 2023 – including all Microsoft 365 and Office 365 licences. They are doing this due to needing to align the pricing of their products globally to reflect the current exchange rate of each country’s local currency to the US Dollar. 

They will be reviewing their pricing every 6 months moving forwards to reflect the current exchange rates more accurately. This increase is in addition to the previous price increase that Microsoft presented in late 2022. 

Which Microsoft 365 licences are increasing?   

As far as we are aware, this will be impacting all licences provided by Microsoft, including those with charity and educational discounts. Please feel free to contact us if you have further questions about how it might impact your business.  

OK, so how much are they increasing by?  

Below is a table of the predicted cost increases we have been provided with from our upstream partners – these are still subject to change right up until the 1st of April when they will be officially confirmed. We have listed below, the most popular licences however if you have a licence which is not listed below, please get in touch and we can provide the information for you.  

Microsoft Standard Monthly Pricing Per User 

Supplier  Current Price  New Price 
Business Basic  £5.40  £5.88 
Business Standard  £9.40  £12.36 
Business Premium  £19.92  £21.72 
Office 365 E1  £9.00  £9.84 
Office 365 E3  £24.24  £26.40 
Office 365 E5  £40.08  £43.68 
Microsoft 365 E3  £38.04  £41.40 
Microsoft 365 Apps for Business  £9.48  £10.32 
Exchange Online (Plan 1)  £3.60  £3.96 
Power BI Pro  £9.00  £9.84 
Power BI Premium  £18.12  £19.68 

Microsoft Charity Monthly Pricing Per User 

We are still waiting on the predicted costs from charities to be confirmed – once they have we will update this post.  


In conclusion, all major licencing providers are now increasing their pricing, and with the fluctuation of exchange rates we predict we will see further changes to costs at each review period. There is unfortunately nothing we can do other than pass these costs onto our customers.  If you want to review your Microsoft 365 licences to see what options are available to you, do not hesitate to get in touch using the Contact page.   ESP Provide all elements of IT Support in Sheffield.