European governments have allocated about 280 billion euros ($278 billion) in funding to cushion the impact of the energy crisis on households and businesses, Bloomberg reported.

The aforesaid funding, calculated by Brussels-based think tank Bruegel, measures new allocations since September and covers everything, from tariff subsidies for small businesses in Greece to direct payments to consumers in Belgium. Part of the money has not been spent yet.

Over the past five years, wholesale energy prices have risen more than 10 times their seasonal average as Russia has cut down natural gas supplies to Europe.

This affects economic output across the continent, with heavy industry under pressure. Consumers are facing a cost of living crisis and UK utility bills are set to triple.

European governments are being hit by rising inflation, which is reducing living standards. Inflation in the UK could exceed 18 percent for the first time in half a century due to a sharp rise in energy prices, Citigroup Inc. said this week.