THE latest Lloyds Bank Savings Index shows a stable picture for the nation’s savers but despite the widely publicised upturn in the economy, many still are not able to save each month.

Almost two in five people (38%) cannot save due to a lack of spare money and nearly a quarter (24%) will either save less or stop saving altogether over the next 12 months.

In terms of amount saved, over a third (34%) indicated they have less than the equivalent of one month’s income put away. That rises to 40% for 35 to 44-year-olds, while only one in five (21%) in the over-65 age group said they had less than one month’s income saved.

At an overall level, that sentiment has been gradually improving since Q4 2012, when the Lloyds Bank Savings Index launched, when the figure was at 38%.

The number of people who have been able to save remains stable from previous quarters, with 26% stating they are able to save regularly throughout the year. Those aged between 18 and 24 are less likely to save regularly (21%) but more likely than any other age group to save whenever they can (45%).

Fifty-five to to 64-year-olds (28%) and those over the age of 65 (32%) are most able to save regularly throughout the year.

Andy Bickers, savings director, Lloyds Bank, said: “Despite widespread news about the economy improving, four in 10 still aren’t saving each month. This shows there is still some way to go for confidence in the economy to filter down to the man on the street.

"Attitudes to saving are still positive though and if people are able to get in the habit of just putting away a small amount each month, this can be increased as circumstances improve.”

Thirty-one per cent of people in Greater London have saved regularly throughout the year, which is the highest figure for any of the areas in the UK. By contrast only 21% of people in the North East have saved regularly and the national average is 26%.

A quarter of people in Greater London also feel that they will be able to save more in the next 12 months. That, again, is the highest figure across the UK, seven per cent above the national average (18%).

Those stating they have saved either regularly or whenever they could slightly improves on last quarter at 63%, with a three per cent point increase from this time last year. That is coupled with a positive swing in expectations for the next 12 months. Two thirds (66%) of people now expect to save more or the same over the next 12 months, which is the highest figure since Q4 2012.

Attitudes towards savings remain similar to previous quarters, with 86% agreeing that it is important to have a minimum amount of savings to protect against unexpected costs or changes in circumstance. Nonetheless, only 52% of consumers feel they have enough to cover unexpected outgoings.

The number of consumers who state they needed to dip into their savings at least once over the course of the year remains stable, with just over two thirds (67%) of those that have saved in the last 12 months doing so.

Of those who have withdrawn from their savings account, the most common reason is to pay for a holiday or unexpected outgoings. Paying for a holiday is consistently the most common reason for withdrawing from savings, with almost a third (29%) of people doing so.