The MoneyMood survey from Legal & General reported far fewer people do not have enough income to cover bills and just over one million more people said they have money left at the end of the month compared to last year.

John Pollock, CEO at L&G Assurance Society, (pictured) said: “This indicates the stronger UK economy has begun to produce an improvement in household finances up and down the country.”

He added: “However, four regions are still showing signs that he recovery has not yet turned around the fortunes of some households. London, Wales, the North East and Yorkshire and Humberside have an increase in the number of homes who say they are struggling compared to a year ago.”

However, more families are saving now, with the average of £108 being tucked away each month, a rise of 20% on last year.