The National Insurance Institute publishes this morning (Thursday) the official poverty report of the State of Israel for 2021. According to the report, there has been an increase this year in the number of the poor in Israel, and the highest increase is among senior citizens.
During the period of the report, about two years ago, the Israeli economy returned to a growth path compared to the Corona crisis - with an increase in GDP, a decrease in unemployment rates in the economy and an increase in real wages.
However, in the second half of 2021, the supports given to families and businesses were significantly reduced, and for the first time in years there was an increase in the rate of poverty and inequality according to net income. In 2021, the poverty line stood at NIS 2,849 per person and NIS 5,698 per couple.
Freezing property taxes and lowering fuel: Netanyahu and Semtorich presented a plan to combat the cost of living // Photo: Leam
A couple with two children will be considered poor if their income is less than 9,117 shekels, and a couple with four children will be considered poor if their income is less than 12,108 shekels. There are almost 1.95 million poor people living in Israel, of which almost 854 thousand are children, and a little more than 212 A thousand senior citizens - that's what the report shows.
The depth of poverty (the difference between household income and the poverty line), which allows one to assess its severity, rose from 38.7% in 2020 to 39.4% in 2021. 21% of families in Israel lived below the poverty line in 2021 (compared to 20.5% the year before ).
The highest increase in the poverty rate was recorded among senior citizens, apparently as a result of the cessation of the special grants given in 2020, and due to the low participation of this segment of the population in the labor market due to the difficulty of returning to work.
No money for medicine
In geographical distribution, it seems that there are more poor people in the periphery, in Jerusalem and in the ultra-orthodox and Arab sectors.
38.7% of the families in Jerusalem are poor, 32% in Bnei Brak and 44% in Berhat.
The poorest city with more than 80 thousand residents is Modi'in Illit, followed by Beit Shemesh.
In the Tel Aviv and Central region, the poverty rate is lower than average.
Based on a survey by the CBS, more than 26% of households testified that they are unable to cover all monthly expenses. Due to financial difficulties, 10.6% gave up medical treatment, 6.9% gave up prescription drugs, and 5.2% gave up a hot meal. .
About 40% of the residents are poor.
Jerusalem, photo: AFP
The data in the report illustrate the fact that the old-age and disability allowances are very effective in reducing poverty. The dimensions of poverty among senior citizens are expected to decrease in 2022, after the amount of the income supplement allowance increased starting in January of last year.
However, the income guarantee allowance is among the allowances whose rate of contribution to poverty alleviation is low, since it has not been changed for many years. The report also shows that in 2020 it could be seen that the aid and allowances given during the Corona period placed Israel close to the average in the countries of the OECD - In 2021, Israel returned to the bottom of the ranking, indicating one of the highest levels of poverty in developed countries. Israel is second from the bottom, after Costa Rica.
Change is needed
Minister of Welfare and Social Security, Yaakov Margi: "The poverty report shows time and time again that allowances help to get out of poverty.
In the upcoming term, I will make every effort to address the causes of poverty and optimal integration in the employment market, at the same time as correct and updated distributive justice."
The Director General of the National Insurance, Yarona Shalom: "In order to deal with the disparities in society, it is necessary to increase allowances and provide tools and assistance to families and individuals who are in the labor market but whose salary is low, with an emphasis on the periphery. There is a need to change legislation." Lev", Eli Cohen: "The poverty situation in Israel is getting worse, and the social gaps are growing.
The report goes back two years, and we believe that the actual situation is much worse. The members of the new government promised the public to take care of poverty, and they must fulfill their promises as soon as possible."
In the "Letat" organization they said: "Only changing the order of national priorities and implementing an appropriate policy will be able to reduce the serious socio-economic problem, from which a quarter of the population suffers."
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