The first Lloyds Bank Family Finances report found that more than a third of Britain’s families only just meet their monthly outgoings, while a further 8 percent don’t have enough income to meet their regular financial commitments.

Simon Kenyon, Lloyds Bank’s director of Everyday Banking, said: “Family purse strings have been under strain for some time and improvements in the wider economy have not yet taken the pressure off household finances. However, there are signs of change as the economies recovers. Families are planning to save more and expect a higher disposable income over the coming months.”

While British GDP grew by 0.7 percent in January and inflation fell below the Bank of England’s 2 percent target rate for the first time in more than four years, more than half of the population said there had been no change to their ability to pay off debt, while 42 percent said they use about three quarters of their income to cover every day living costs.

While uncertainty remains, Lloyds found the number of families expecting to have more disposable income in the next six months is at its highest point since October 2012, as one in four anticipate an improved financial situation.