The official poverty report of the State of Israel, which is distributed by the National Insurance Institute today (Wednesday), shows that the standard of living in 2020 rose by 2.4% (as measured by the median net income) following the welfare policy and benefit payments transferred this year.
This figure is particularly significant because without the assistance in the corona period that included, among other things, the beginning"A, grants, prevention of offsetting benefits and more, the standard of living would have fallen by a real rate of about 10%.
The poverty line for 2020 is about 2811 shekels"H only. A family of 2 will be considered poor if their income is less than 5,623 shekels"H. A couple with a child will be considered poor from an amount lower than NIS 7,450"8, and a family with a couple of parents with 3 children will be considered poor if their income is below NIS 10,543"H.
The rate of contribution of the payments of benefits and grants to rescue from poverty was particularly significant for those entitled to unemployment benefits, child benefits, senior citizen benefits and general disability.
The number of poor people in 2020 was 1.9 million people who are about 21% of the population, which is a decrease from 2019 where about 21.6% of people were poor.
Among Israeli children there was also a decrease when in 2020 there were about 864,000 poor families compared to about 877,000 in 2019. Also among the elderly there was a significant decrease especially when in 2019 there were about 179,000 poor citizens who constituted about 16% and in 2020 the figure was 158,000 poor senior citizens who are about 13.5% of the elderly population.
The depth of poverty in 2020 decreased and the distance of bringing a family from the poverty line was 38.2% compared to 39.6% in 2019.
The rate of poor persons shows that there is an increase in the rate of poverty among families in which at least one of the breadwinners is a self-employed person who has reached 16.6% of the total self-employed. The incidence of poverty among employees dropped from 17.8% in 2019 to 17% in 2020.
The greatest impact of the social safety net on the level of income is reflected among the second to sixth decile. The first, most needy decile, donated the most when its disposable income rose by 12.3%.
The Gini index of economic income and net income shows a decrease in net income inequality over the last 6 years when in 2015 the index was 0.395 compared to 0.370 in 2020. This index decreased by 1.5% between 2019 and 2020.
Even in the international comparison, it can be seen that the model of social assistance provided during this period placed the State of Israel in close proximity to the OECD average compared to the low position in which Israel stood in previous years.
As mentioned, the National Insurance Institute also examined the food insecurity indices compared to the previous report released in 2016. Comparing the years, a relative decrease in the percentage of families, senior citizens and children who are in food insecurity can be seen. However, the numbers are still high, with about 650,000 children, 976,000 adults, 522,000 families and 120,000 senior citizens in food insecurity.
Although according to the data, the proportion of families in food insecurity has decreased and stands at about 16.2% of the population, still subjective poverty (the percentage of people who felt poor in the past year) stands at 12.2% of the total population and the largest gap is among the Arab population. Also, the rate of waiver of expenses and essential products showed that a quarter of all households report that they are unable to cover all the required monthly expenses. 30% reported giving up hobbies or leisure activities, and about 10% gave up medical care in 2020.
Of the largest cities, Jerusalem is at the top of the poorer cities, followed by the Judea and Samaria district and the city of Ashdod.
The National Insurance Institute recommends raising the benefits that serve as a last safety net for low-income families or families in temporary financial distress: income support, old-age pension and unemployment benefits.
Minister of Welfare and Social Security, h"As Meir Cohen, said: "The thing that stands out most of all in the duo"Poverty is that when the state intervenes and has a welfare policy – it helps weak populations and gets them out of poverty. I grew up in the periphery, I see the people every day, the stories behind the numbers that appear in the duo"H. If there is one thing that keeps sleep out of my eyes it is poverty and inequality and therefore duality"H. points out to me that the measures taken for the benefit of the weak populations, such as the continuation of the double benefit arrangement, the reform of the rights of the disabled, benefits for the unemployed returning to the labor force, assistance to senior citizens and more, will in fact remove weak populations This is my mission".
CEO"To the Social Security, Meir Spiegler, added: "Already from the outbreak of the corona crisis, Social Security understood the magnitude of the incident and made social and societal decisions as an outline began"A, in parallel with the promotion of legislation that helps populations in distress, such as those aged 67+, single-parent families, who are entitled to income support, etc."B, which saved hundreds of thousands of families from poverty, and placed the State of Israel close to the OECD average in investing in citizens during the crisis. Investing in benefits for the benefit of the citizens who need it is a reality commitment in parallel with actions to encourage employment. The Corona plague was a wake-up call for Israeli society regarding the need for independent, stable social security that provides a social safety net and promotes welfare policies for those who need it – this is the human and economic compass in a reformed society."