The official poverty report of the State of Israel issued by the National Insurance Institute is based on the administrative data of all citizens of the State of Israel and not of a representative sample, and according to the indices of the OECD countries.
- While in 2021 the poverty line stood at NIS 2,892, in 2022 the poverty line rose to approximately NIS 3,076 due to the increase in median
net income at a rate of 1.9%. - According to the data of the poverty report, in 2022 there were 1.98 million poor people in Israel, including 873.3 thousand children and 152.5 thousand senior citizens.
- Between 2021 and 2022 - the incidence of poverty remained unchanged and stood at 20.9% among individuals, while among families there was a decline
from 20.5 % to 20.2%. - In addition, the National Insurance Poverty Report shows that there are 949.6 thousand poor people of working age in the State of Israel.
- This time, too, we clearly see in the poverty report that transfer payments (allowances) reduce the poverty of individuals in Israel.
- In 2022, the transfer of allowances and assistance provided to individuals lowered poverty by 31.9% and of families
- by 40.3% - Although this is the lowest reduction in two years, the contribution of government intervention to reduce poverty in 2022 was higher
than it was before the Coronavirus crisis. - In 2022, there was an increase, further to the increases from the previous year, in the depth and severity of poverty and in almost all population groups.
- In 2022, the incidence of poverty among Haredim (ultra-orthodox Jews) was about 35.3%, while in 2021 it was 34.4%.
- Among the Arab population, the incidence of poverty was 39% in 2022 and 38.9% in 2021.
- Among non-Haredi Jews - the incidence of poverty among families in 2022 was 14% and indicates an improvement in their situation, since in 2021 the incidence of poverty among non-Haredi Jewish families was 14.7%.
The incidence of poverty among different family compositions, according to the number of children
- The incidence of poverty among families with 5 or more children stands at 51.6%, families with 4 children - 33.3%, and families with 3 children stood at 20.8% in 2022.
- It can be seen from the data of the National Insurance report that the incidence of poverty is 22.1% for a family with children and 19.1% for a family without children.
Incidence of poverty of individuals by age
In 2022, the incidence of poverty among senior citizens was 18.3%, among children – 28.2%, and among those aged between 18 and retirement – 12.7%.
It should be noted that the incidence of poverty among children increased in 2022, while among senior citizens it decreased as a result of an increase in the income supplement benefit for this population group and an expansion in eligibility.
The incidence of poverty among working families
which account for about half of the poor families, increased when among families headed by an independent worker there was an increase in the incidence of poverty.
While in 2021 the figure was 13.8%, in 2022 it rose to 13.8%.
Among families headed by a salaried employee, there was also an increase from 14.4% in 2021 to 14.9% in 2022.
Poor families among allowance recipients
- The incidence of poverty is particularly high in families receiving income support and alimony benefits – 53.7% and 37.3%, respectively, due to the fact that no changes at all or only minor changes were made in eligibility conditions and the amount of the benefit that is considered particularly low.
- The National Insurance Institute asked in the last poverty reports to pay attention to this figure, and recommended raising the amount of the benefit at the Knesset through legislation, but this remained unchanged.
- According to the National Insurance Institute's Poverty Report, 21% of general disability pension recipients are poor, 21% of child allowance recipients are poor, and 15% of unemployment benefit recipients come from poor families.
- However, the direct contribution of transfer payments and allowances, which help reduce the incidence of poverty among families receiving an allowance, can be seen, with 66.6% among families receiving an old-age and survivors pension, 55% among those receiving disability benefits, 28.4% among those receiving unemployment benefits and 16.5% among those receiving income support benefits.
Poorest cities
- The findings of poverty in geographic distribution show that the dimensions of poverty in the districts of Jerusalem, the north and the south are higher than the average. The incidence of poverty on families reaches 36.1%, 22.9% and 22.5%, respectively. In contrast, in the Tel Aviv and Central districts the rates are lower than average.
- The 10 poorest cities in the settlements with over 80,000 residents are: Modi'in Illit, Jerusalem, Beit Shemesh, Bnei Brak, Netanya, Lod, Ashdod, Be'er Sheva, Haifa and last on the list: Bat Yam.
Coverage of expenses
This year, the National Insurance Institute added indices to its report on expenditure coverage, food insecurity, and the percentage of people waiving consumption due to economic reasons. The data presented show that in 2022, the rate of impoverished persons, and the rate of households that were unable to cover all their expenses, also increased the percentage of people who, for economic reasons, skipped a meal at least once every two days and waived leisure activities. On the other hand, the rate of those who waive medical treatments and prescription drugs due to economic reasons is identical to the previous year.
Food insecurity
In the second and third quarters of 2023, 30.9% of households lived in food insecurity due to economic reasons: 12.6% in very low food security and 18.3% in low food security.
The rate of households that could not afford food that was not harmful to health was – 31.4%.
International comparison
It should be noted that this year, too, it is clear that in an international comparison, poverty in Israel is among the highest among developed countries.
Among persons and children – Israel is ranked second after Costa Rica and among senior citizens it is also ranked high – after countries such as Japan, Australia and the United States.
Gini Index of Income Inequality
The Gini income inequality index, according to net income, has hardly changed and declined by a moderate rate of 0.2%, and by economic income by about 2%, between 2021 and 2022.
Minister of Labor, Yoav Ben Tzur: "Even in times of war, families and citizens must also be cared for on the home front. The issue of poverty becomes more and more valid at a time when the ripples of war also affect daily life, going on vacation at the same time as transferring reliefs and granting allowances to those who need it. There is no doubt that a policy of compassion and mutual responsibility in the economy, too, takes people out of poverty and also needs to integrate with employment and fair wage methods. As an integral part of my job, I see great importance between the combination of assistance with allowances and the provision of tools in an occupational framework, and I will direct the activities of my office there as well."
Acting Director General of the National Insurance, Yarona Shalom: "The poverty report issued by the National Insurance Institute every year is a tool for policy makers and legislators regarding the state of poverty, social gaps and its severity in the State of Israel. The National Insurance Institute accompanies every social legislation and expresses its opinion as part of Knesset discussions, as the entity that meets the public on a daily basis and tries to help in difficult situations. In situations of distress, we see aid and allowances lifting people out of poverty and allowing them to live in dignity. The National Insurance operates employment programs in rehabilitation and funds programs in the labor world within the framework of the National Insurance Funds, in order to allow as much comprehensive assistance as possible in order lift people out of poverty, and we will continue to do so."
Vice President of the Research and Planning Administration, Nitza Kasir: "There is great importance in social investment for needy populations and the rescue from poverty and the reduction in social gaps and crises. In Israel, the scope of expenditure is very low by international comparison, and therefore the contribution of the policy to the rescue of poverty and the reduction of inequality are low. There is a significant need for a change in priorities that was sharpened even more during the Iron Swords war, due to the high rate of socio-economic damage as well."