Israeli children crushed by financial burden

The Bank of Israel has admitted that young working families in Israel are struggling under the financial burden of raising children, but the support they receive from the government is especially low compared to parents in other OECD states.

The incomes of young working families with children are lower than their average incomes during their later lives, and their expenses are higher, according to Haarets.

This is why it is common practice in most advanced economies to assist such families with tax benefits, child allowances, subsidized services and other benefits.

In Israel, this assistance to young working families is significantly lower than in other advanced economies, states the study.

The central bank’s research department released the study written Tuesday.

The study found that the cash benefits provided in Israel for young families (defined as couples married up to 10 years with children up to age 9, where at least one of the parents works a significant part of the time), such as tax credits or child allowances, are markedly lower than their level in almost all other OECD states, particularly for working families in the middle and lower income brackets.

At the same time, the services provided to families with children, and other benefits such as tax deductions for child expenses, are also no higher in Israel than elsewhere.