UK customers of Microsoft’s Commercial Cloud services including Microsoft 365 and Office 365, as well as Azure, will welcome the news that prices will be reducing by 5% or 6% in February.
Microsoft 365 prices will be reducing for subscriptions renewing after 01st February 2025. The new prices for Microsoft 365 subscriptions for 2025 are shown in the table below.
It’s quite a rare thing for Microsoft to reduce prices for UK customers, however, the reason for the price change is to more closely align prices with global levels. Microsoft have a semi-annual process for aligning prices globally to US dollar levels ensuring that customers across different currencies experience consistent pricing, reflecting local exchange rates against U.S. dollar.
In another change Microsoft are introducing a 5% premium for customers who have Annual Contracts but are billed monthly. This change takes effect for subscriptions renewing after the 01st April 2025.
Prices for core Microsoft 365 subscriptions and Office 365 subscriptions from 01st February 2025.
These are for Annual Contracts billed annually, Monthly Contracts will have a 20% premium.
| Product | Current Price | M365 prices from 1st February 2025 |
| Microsoft 365 Business Basic | £4.90 | £4.60 |
| Microsoft 365 Business Standard | £10.30 | £9.60 |
| Microsoft 365 Business Premium | £18.10 | £16.90 |
| Microsoft 365 Apps for Business | £8.60 | £8.10 |
| Microsoft 365 Apps for enterprise | £12.50 | £11.70 |
| Office 365 E1 (no Teams) | £6.40 | £6.00 |
| Office 365 E3 (no Teams) | £19.90 | £18.60 |
| Office 365 E5 (no Teams) | £34.30 | £32.10 |
| Microsoft 365 E3 (no Teams) | £31.00 | £29.00 |
| Microsoft 365 E5 (no Teams) | £50.30 | £47.10 |
| Microsoft 365 F1 | £1.85 | £1.73 |
| Microsoft 365 F3 | £6.60 | £6.20 |
| Microsoft 365 F1 (no Teams) | £1.44 | £1.35 |
| Microsoft 365 F3 (no Teams) | £6.20 | £5.80 |
| Microsoft 365 Business Basic (Nonprofit Staff Pricing) | Grant | Grant |
| Microsoft 365 Business Standard (Nonprofit Staff Pricing) | £2.50 | £2.30 |
| Microsoft 365 Business Premium (Nonprofit Staff Pricing) | £4.50 | £4.20 |
| Microsoft 365 E3 (Nonprofit Staff Pricing) | £8.30 | £7.70 |
| Microsoft 365 E5 (Nonprofit Staff Pricing) | £21.00 | £19.60 |
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