By Pesach Benson • 18 December, 2024
Jerusalem, 18 December, 2024 (TPS-IL) — Nearly two million people in Israel were living below the poverty line in 2023, with approximately 872,400 children and 158,500 senior citizens affected, according to an annual report released by the National Insurance Institute on Wednesday.
The report revealed that poverty continues to be a significant issue in Israel, with 20.7% of the population living in poverty. Alarmingly, the poverty rate among children is even higher, at 27.9%, and 12.8% of senior citizens are also affected.
“The poverty report clearly emphasizes the need to provide relief and assistance to a large public that is below the poverty line and the war has even worsened their situation,” said Acting Director General of the National Insurance Institute, Zvika Cohen.
“It is already clear that the economic hardship and the economic impact of the war will continue for years to come, but this will require emphasis, already in the Arrangements Law that is currently being discussed – not to harm the weakest populations and at the same time to allocate resources to the populations that have been affected,” Cohen added.
Israel ranks second-to-last in the OECD in terms of poverty based on disposable income, with only Costa Rica faring worse for child poverty among developed nations. The incidence of poverty is especially high in Israel’s Arab and Haredi communities, with 38.4% of Arabs and 33% of Haredim living below the poverty line. These groups make up a disproportionate share of the poor population, with Arabs comprising 42.4% and Haredim 22.5%, despite representing a smaller portion of the total population.
The National Insurance Institute (NII) pointed to the economic impact of recent crises, including the COVID-19 pandemic and the October 7 attacks, as contributing factors. These events disrupted economic growth and have influenced the welfare policies currently in place, according to Nitza Kassir, Deputy Director of Research and Planning at the NII. The report also notes that the poverty rate in Israel has remained relatively stable from 2022 to 2023, with a slight decrease from 20.8% to 20.7%.
The NII noted high levels of child poverty, despite a 0.2% decrease from 28.1% in 2022 to 27.9% in 2023. Senior citizens, on the other hand, have a lower incidence of poverty, with 12.8% of seniors living below the poverty line. The rate is notably higher for seniors living alone, at 19.8%, compared to 8.4% for seniors living with family members.
The NII stressed that transfer payments and direct taxes play a crucial role in alleviating poverty, with a 33.5% reduction in poverty rates for individuals and a 41.2% reduction for families due to these measures. However, the NII also notes that, compared to other developed countries, Israel’s use of such mechanisms is relatively low, limiting their effectiveness in reducing overall poverty levels.
The report also cited issues within Israel’s pension system. Senior citizens receiving income support and alimony benefits face particularly high poverty rates, with 52.5% of income support recipients and 37.9% of alimony recipients living in poverty. Conversely, the pension for senior citizens is the most effective at reducing poverty, followed by disability pensions. In 2023, the disability pension helped reduce poverty by 56.2%, while income support reduced poverty by 16.4%.
Geographically, poverty is most pronounced in areas such as Jerusalem, the North, and the South, with family poverty rates of 36.2%, 22.5%, and 22.6%, respectively. In contrast, poverty rates in the Tel Aviv and Central districts were lower than the national average.
