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Latet Report Reveals COVID-19-Based Financial Hardship in Israel

A recent report presented an increase in the depth of poverty, financial hardship and food insecurity among Israeli households amid the ongoing COVID-19 pandemic.

The annual Alternative Poverty Report released by the Latet organization, a nonprofit that provides various welfare and food aid services, shows that during 2020, the number of households living in poverty has jumped from 20.1% of households before the pandemic to 29.3% (now a total of 850,000 households).

Unlike the State of Israel’s official poverty report, which measures poverty based on income alone, Latet’s Alternative Poverty Report measures poverty according to households lacking in essential needs, such as housing, education, healthcare, food security and the ability to cover the cost of living. However, this year, Latet did not calculate the report according to the multi-dimensional poverty index but rather conducted research that enables a broader understanding of the impact of the COVID-19 crisis relating to changes in employment and economic status of Israeli households compared to before the pandemic.

According to the new report, today 656,000 Israeli households (22.6%) suffer from food insecurity, compared to 513,000 (17.8%) before the pandemic. Among them, 286,000 (9.9%) live in extreme food insecurity, up from 252,000 (8.8%) before the pandemic (according to the National Insurance Institute of Israel). About 143,000 (+4.8%) households have been newly categorized as food insecure since the beginning of the pandemic, and 34,000 have been newly categorized as dealing with extreme food insecurity.

Amid the coronavirus pandemic, 422,000 new Israeli households found themselves in financial hardship. The percentage of the households that suffer from financial hardship jumped from 24.1% before the pandemic to 38.6% (an increase of 14.5%). Of the households that reported encountering financial hardship during the pandemic, 77% are Jewish families. In comparison, 58% of the households that reported encountering financial hardship before the pandemic were Jewish.

The study also reports that 86% of elderly aid recipients are experiencing loneliness. Of this group, 21.6% fear they might die at home with no one knowing.

“The surge in poverty rates confirms the most pessimistic economic forecasts of the beginning of the crisis and highlights the weaknesses of the ecosystem in Israel,” said Founder and President of Latet Gilles Darmon. “The coronavirus has upset the delicate economic balance and pushed tens of thousands of new families into economic hardship and poverty, but it is the state that has created the conditions for this fragility by previously refusing to invest significantly in those families to build social resilience.”