National Insurance Institute (NII) officials base projection on the high end of child allowance cuts that are thought possible. It is expected that Israel could cut somewhere between NIS 2.5 billion and NIS 3.5 billion. Officials at the NII predict that if, as part of the neo-liberal economic and social policy and the efforts to reduce government budget, state support for child allowances is cut in half, it would increase the proportion of children living below the poverty line by more than 6 percentage points to over 40 percent.

The National Insurance Institute pays a monthly child allowance to families living in Israel who have children up to the age of 18. The allowance is aimed at helping the family with the expenses entailed in raising their children, and it is paid regardless of the amount of the family’s income. In most cases, the allowance is paid automatically, according with the information transferred to the NII by the hospital after the birth, and it is not necessary to submit a claim.

Disabled children demonstration in Tel-Aviv (Photo: Nechim.org)

The “Yedioth Ahronoth” newspaper headlined last week with the agreement made by Prime Minister, Benjamin Netanyahu, and new Minister of Finance, Yair Lapid, to make a series of cuts in Israel’s budget, child allowances and public sector benefits. According to the newspaper, one week after taking office, Lapid asked ministry officials and department heads to submit proposals to decrease the deficit in the budget which has now reached NIS 40 billion. The newspaper added that Lapid and Netanyahu have agreed on social budget cuts: NIS 3.5 billion from child allowances and NIS 3 billion from public sector employee benefits.

More on child allowance:

http://www.btl.gov.il/English%20Homepage/Benefits/Children/Pages/default.aspx