Israel's Welfare Budget Soars, Yet Poverty Rates Remain Stagnant
Despite a significant increase in the budget for the Ministry of Labor, Social Affairs and Social Services, poverty rates in Israel have shown little to no improvement over the past 15 years. The ministry's budget has grown by 130% in real terms since 2010, reaching NIS 14 billion in 2026, yet key poverty indicators have remained largely unchanged. State Comptroller reports have repeatedly highlighted chronic failures in the system, including inadequate care for adults with disabilities, shortcomings in social services departments, and ineffective outsourcing of welfare services to local authorities.
Specific issues include a failure to implement crucial legislation, such as the Protected Housing Law from 2012, which still lacks full implementation, leaving thousands of elderly individuals without adequate housing solutions. Furthermore, a 2024 Comptroller report found that 37% of special education graduates eligible for welfare services, approximately 3,700 individuals, receive no support from the state. Many individuals with disabilities remain outside the community and are not employed in independent work.
The welfare system has also struggled to cope with increased demand during the COVID-19 pandemic and the ongoing conflict since October 7, 2023. Despite a rise in the number of people needing social assistance, the system has seen reductions in services and an increase in unfilled social worker positions, with 1,155 positions currently vacant. The reform to transfer welfare services to local authorities, initiated in 2014, has also been largely unsuccessful, with 81% of local authorities outsourcing services without adequate oversight.
Israel ranks second among OECD countries in poverty rates, with nearly 2 million people living in poverty in 2023, and is third from the bottom in welfare spending. The article suggests that the frequent rotation of welfare ministers over the past 15 years, with ten ministers serving in the role, has hindered the consistent implementation of reforms. This pattern of increased budgets without improved outcomes, coupled with recurring systemic failures, raises questions about accountability and the effectiveness of welfare policies in Israel.
