People on middle incomes to suffer the most in 2012

THE RICH and poor will both experience rising living standards next year, while middle earners will see disposable incomes stagnate, according to a report out today from the Centre for Economics and Business Research (CEBR).

Disposable income is set to rise by 0.5 per cent for the top and bottom earners, but only by 0.1 per cent for those on middle incomes.

The think-tank claims that the highest earners face higher pay rises and lower inflation than people on lower incomes.

Meanwhile those at the bottom will see incomes rise because their benefits are linked to inflation.