Latet, an Israeli nonprofit aid organization, published its annual poverty report on Monday, December 16, shedding light on the complex economic reality in Israel during 2024 against the backdrop of ongoing war and occupation. According to the organization’s multidimensional poverty index, which defines poverty as significant deprivation in relation to basic living needs and conditions, 678,200 families (22.3%) and 2,756,000 individuals (28.7%) in Israel are living in poverty. This includes 1,240,000 children, accounting for 39.6%.
The Latet “Alternative Poverty Report found that some 10% of families live in “severe nutritional insecurity.” The report added that some 325,700 families and 1,180,200 people (including 627,600 children) suffered from serious food insecurity, and another 354,800 families and 990,600 people suffered from food insecurity.
An estimated 41% of Jerusalem families suffer from poverty, compared to about 20% in the rest of the country (Photo: Liba Farkash/Flash90)
According to the report, “The consequences of the complex economic situation caused by the war disproportionately affect the population. Low-resource households, already collapsing under the economic burden, are the first to suffer from economic fluctuations. “Despite the extent of assistance provided to those in need, the fact that many still require aid for food and basic essential needs and face significant economic deficits highlights the depth of the distress and the need for more comprehensive solutions,” it said.
“The economic measures planned for the 2025 budget – raising the VAT, increasing National Insurance contributions, freezing tax brackets, and child allowances – burden everyone but are expected to deepen the hardship, particularly among weaker populations,” they added.
The forecast is alarming, “The relative stability in poverty rates this year stems partly from government support for evacuees and businesses, activities by civil society and philanthropy, continued national insurance payments, and the gradual nature of descent into poverty.” The report explains, “This process typically begins with exhausting savings, moves to taking out loans, and only later becomes evident in official poverty statistics. Unfortunately, future projections indicate a worsening situation, particularly considering the government’s new economic measures.”
The report also examines the challenges faced by those supported by Latet. “The cost of living in Israel, already high before the war, has significantly worsened,” it states. “The conflict has driven up prices, particularly for food and consumer goods.” The average monthly expenditure for supported households is 10,367 shekels – 1.7 times their average net monthly income of 6,092 shekels.
Among aid recipients, 44.6% also reported that the war impacted their children’s school performance at much higher rates (3.2 times higher) than in the general population. The emotional state of children of aid recipients was also more significantly impacted by the war, the study said, with nearly 47% of recipients’ children reporting that the war had a significant impact, compared to 14.5% of children in the general population.
Some 85.4% of families who received aid reported that they could not afford tutoring, 84.7% could not afford extracurriculars, 71% could not keep up with school payments, and 51.4% could not afford frameworks for their infants and toddlers. Some, 65% of aid recipients told Latet that their financial situation has worsened over the past year. Over 70% said they could not afford medicine and did not purchase it or receive necessary medical treatment. Nearly, 70% of those who received aid forfeited fixing serious problems in their apartments because of economic constraints.
More on the new Alternative Poverty Report:
https://www.latet.org.il/upload/files/1734341465675ff35997b8f228350.pdf
