Microsoft 365 prices have risen by up to £30 a year - here's how to beat them

If you use Microsoft 365 for Word, Excel and other tools, your subscription may just have got more expensive - by up to £30 per year.

This is because Microsoft has added AI-powered features like Copilot and Designer to its subscription plans, automatically raising costs for users with auto-renew enabled.

But don’t worry - there’s a way you can avoid the price hike. Here’s everything you need to know.

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Microsoft 365 price rises explained

At the start of 2025, Microsoft raised the prices of its Personal and Family subscriptions by 42% and 31%, respectively. These new prices applied to renewals from 16 January 2025 onwards and new subscribers are already paying the updated rates.

Here’s a breakdown of the changes:

Why the price hike?

Microsoft says these price increases are largely down to the inclusion of new AI features, including:

Copilot Designer

How to save with Microsoft 365 Classic

If you are an existing subscriber and don't need Copilot and Microsoft Designer, you can revert back to a 'Classic' plan, which offers the same services for the old price, but without the new AI features. Microsoft is offering this downgrade option for the next year. To switch:

Subscriptions > Manage'Cancel Subscription'. choose a Classic Personal or Classic Family plan

Your plan will switch automatically or on your next billing date.

What if my subscription has automatically renewed?

If your Microsoft 365 subscription has automatically renewed and you’ve paid the higher price, you can still take action:

Request a Partial Refund:Full Refund Within 30 Days:within 30 days of payment one time per Microsoft account, per subscription product.

You can check your renewal status on the Microsoft website:

Subscriptions > ManageonoffNews, deals and stuff the manuals don't tell you. 

More ways to save on Microsoft 365

See if you can get a discount through your workplace Get online and mobile versions of Microsoft Office for free Downgrade to a Basic plan Students and teachers can get some software for free 

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source https://www.which.co.uk/news/article/how-to-avoid-microsoft-365-price-rises-aGNYY5O92as9