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3 Av 5764 - July 21, 2004 | Mordecai Plaut, director Published Weekly
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NEWS
New Child Allowances Take Effect
By G. Kleiman

Seventy thousand families felt the sting of another cut in child allowances going into effect on July 20, following the cut enacted by the government and the Knesset one year ago, with Shinui and NRP support, as part of the Finance Ministry's new economic program.

According to the timetable, the plan will continue to take effect in stages until the year 2009, when every family will receive only NIS 120 ($27 in today's value) per child regardless of the size of the family. Families with one child now already receive NIS 120 per month instead of the previous level of NIS 144.

A family with ten children, which received NIS 4,053 before the most recent cuts, received NIS 3,562 this month and this amount will continue to dwindle down to NIS 1,200 (120 per child) in 2009. By the end of the process its income will have dropped by NIS 2,800 per month, a sum of over NIS 30,000 per year.

According to a position paper Bituach Leumi released shortly before the plan was passed, as a result of the most recent cuts in child allowances 83,000 children will join the 618,000 children currently living in poverty.

Table Showing Cuts in Child Allowances

2003 2004 2009
One child NIS 144 NIS 120 NIS 120
Two children NIS 288 NIS 240 NIS 240
Three children NIS 483 NIS 404 NIS 360
Four children NIS 937 NIS 808 NIS 480
Five children NIS 1,459 NIS 1,267 NIS 600
Six children NIS 1,980 NIS 1,726 NIS 720
Seven children NIS 2,490 NIS 2,185 NIS 840
Eight children NIS 3,011 NIS 2,644 NIS 960
Nine children NIS 3,532 NIS 3,103 NIS 1,080
Ten children NIS 4,053 NIS 3,562 NIS 1,200

 

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