The firm's Money Mood survey found more households had money to save and more had money left over at the end of month.
Those in London, South East, South West, Wales and Yorkshire and Humber all reported an increased ability to save.
In total, over 300,000 extra people said they could afford to save and over 9m said they had money left over at the end of the month.
This is up from 8.7m at the end of April 2012 and the average saving per month was £88, up 24 per cent from £71 in April 2012.
Those in the South East were saving the most per month, £151, while people in the North saved only £43. The South East also saw the biggest increase in savings, up from £89 in April 2012.
{desktop}{/desktop}{mobile}{/mobile}
However, those in East Anglia, West Midlands, East Midlands, North West and North East all noted a drop in the number of people able to save. East Anglia was the worst affected with 160,000 people saying they were unable to save.
Some 15 per cent said they were struggling to pay their bills but they benefited from a decrease in their monthly shortfall from £74 to £72.
Mark Gregory, L&G chief executive of savings, said: "Our latest survey shows that 300,000 more homes say they're in a position to afford to save than year ago. We hope this is perhaps an early indication that we have weathered the economic storms and we will see people saving in even bigger numbers going forward."

• Want to receive a free weekly summary of the best news stories from our website? Just go to home page and submit your name and email address. If you are already logged in you will need to log out to see the e-newsletter sign up. You can then log in again.