One in five home owners will not be able to pay for the improvements needed to properly insulate their home because they don’t have sufficient savings and won’t be able to borrow, according to new research by the Dutch central bank.

Households which have been hard hit by rising energy prices because they have low incomes and live in poorly insulated homes will suffer most, the central bank says.

The government has set a target of removing 1.5 million homes from the gas grid by 2030, which means investing in insulation and alternative sources of energy for heating and cooking.

The average cost will be around €34,000 for a detached home and €14,000 for an apartment, the bank says. But one in five will not be able to afford it.

To make sure the target is met, the government should help households to improve the sustainability of their homes with better information and targeted incentives, the bank says.