Unemployment benefits and child support payments are
continuing to erode in real value this year according to a
statistical analysis of Bituach Leumi figures performed by
the Bank of Israel's research department. In January child
support payments declined in real value by 22.3 percent
compared to January of last year, while unemployment benefits
declined in real value by 40.2 percent. This follows a 16
percent erosion in child support payments in 2002, stemming
from twice freezing cost-of-living increases that would have
been due as well as two cuts in child support payments
carried out by the Finance Ministry during the last year.
These alarming figures come in addition to another sharp cut
in child support payments slated as part of the current
economic plan.
Meanwhile other Bituach Leumi allowances across the board
will be frozen at their current levels. If these changes are
approved by the Knesset, this year will bring another sharp
erosion in the real value of child support payments.
The High Court is also considering an appeal against a
Finance Ministry proposal to carry out a scaled cut in child
support payments that would discriminate against households
in which the head of the family did not serve in the IDF. The
hold-up in court has already prevented the Finance Ministry
from executing the plan for six months. If the High Court
eventually rules in favor of the Finance Ministry the average
cut in child support payments will increase by another 7
percent.
According to Bank of Israel analysts the erosion in
unemployment benefits posted in January comes on the heels of
a 4.5 percent decline in real value posted last year. The
total of NIS 3.7 billion ($810 million) Bituach Leumi paid in
annual allowances dropped in real value by 9.6 percent in
January of this year compared to a 2.5 percent drop in
January of last year.
The bureau for socioeconomic justice set up by the Labor
Party has decided to continue protesting against Finance
Minister Binyamin Netanyahu's economic plan for several more
days. On Friday a protest vigil was held outside the homes of
Netanyahu and Yosef Lapid and a demonstration was held
outside the Knesset during the meetings and voting on the
economic plan to be held during a Knesset plenary session.
Bureau chairman MK Ofir Pines called on Minister Lapid "to
break the silence and erect a bridge between the middle
classes and the Finance Ministry."
