Lower earners will still be better off because the extra £18 will be more than offset by the £29 per month increase in personal allowance.
But when they see it on their payslip that big jump in contributions may encourage some to jump ship. The current opt-out rate is just 9 per cent.
In April 2019 the employee contribution rate will jump to 5 per cent which could give more pause for thought as they seek to balance the family budget.
The idea of getting people to pay more into their pensions is a no-brainer. But when faced with the hard fact of cash vanishing from their pay-packets some may choose jam today.
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The sound of loosening purse strings
For the first time since the financial crisis there are more than 300 different 95 per cent loan-to-value mortgages on offer, according to Moneyfacts.
This provides more evidence that lenders are loosening their purse strings just as interest rates are expected to rise. Apparently eight lenders returned to this market.
The good news is that the increase in competition has had a healthy effect on fixed rates with the average two-year fix now coming in at 4.02 per cent for those with a 5 per cent deposit.
This compares with 6.39 per cent at the height of the crisis in April 2008 and 4.16 per cent six months ago.
It is easy to look on from afar and raise a sceptical eyebrow, but I got on to the housing ladder via a 95 per cent loan-to-value mortgage as did thousands of others.
Youngsters are too often exposed to the worn out line that renting provides flexibility. Well, it might. But it also provides an opportunity to pay someone else’s mortgage when you could be repaying your own.
Tony Hazell writes for the Daily Mail's Money Mail section
