Israel's new economic plan has serious consequences for women and
their families, with major cutbacks in family funding and
an increase in the official retirement age.
NETANYA, Israel (WOMENSENEWS)--A new economic plan in
Israel slashes child allowances, raises health taxes for
housewives and increases the retirement age for women by
seven years.
Last week, a single mother named Vikki Knafo conducted a
week-long protest walk from Mitzpe Ramon to
Jerusalem, covering 124 miles and almost one-third of the
country. Her journey drew support along the way, as well
as attention to the plight of other single mothers on
welfare, and she was met at her final destination, the
Finance Ministry, by activists from all over the country.
"I am not a political activist. I am just a woman who has had
enough," she told The Jerusalem Post. "The government has
to realize that we are not going to just sit and take it."
These changes represent a significant development in
Israel's policy, which once financially rewarded women for
having children. Although women aren't specifically being
targeted in the spending cuts, they are among the hardest
hit.
Single mothers are feeling the brunt of the changes. The National
Insurance Institute of Israel has lowered the ceiling of
how much they will give for child support in circumstances
in which a child's father is unable or unwilling to pay
and supplemental income to families living below the
poverty level has been drastically reduced, leaving a
large segment of the population being thrust into poverty.
These changes have been on paper for months, but once the reforms
were actualized, and families were faced with the reality
of not having enough money, people began to protest.
Ella Gera, advocate and executive director of the Israel Women's
Network, said Knafo's protest is the birth of a social
movement as women continue to gather in front of the
Ministry in
Jerusalem, without any orchestration.
"It is absolutely amazing what is happening there," said Gera.
"They are spontaneously rising up to protest against what
they see to be an impossible situation. Vikki works. She
is not a parasite, as the Foreign Ministry is trying to
make out. But her salary is way below minimum wage. She
has three kids to support, and the state was giving her a
supplementary income. Now, about 25 percent of her income
has been cut back. Where is she supposed to cut back now?
What does the Foreign Ministry expect her to give up on?"
Cuts Constitute a Change in Demographic
Policy
Other cuts involve a monetary gift that
Israel has provided for many years upon the birth of each
new child. This amount was NIS 1,400 ($325) for each of
the first four children born, and then from child number
five and on, that amount doubled to NIS
2,800 ($650) per child. These grants were given to support
the growth of families in Israel, for both religious and
demographic reasons.
Now, while the initial gift has actually been increased to
NIS 1,600 ($372) for the first child, nothing further will
be given for additional births. According to National
Security data, this means that 71 percent of all
childbirths in Israel
will no longer receive grants.
Also affected is a monthly child allowance that mothers have
received until now. Under the new plan, mothers will
receive a flat
NIS 144 ($33) per month for each child, whereas
previously, each new child brought its mother a grant
larger than its prior siblings.
A mother with 3 children will now receive 38 percent less
government support and mothers of 7 or 8 children will
find a 73 percent cut in the funding they used to receive.
"It wasn't such a great amount," says
Gera. "But more than the money, it was a statement of
support by the country."
All of these cuts are being phased in gradually over the next
seven years and will have the greatest effect on families
with large numbers of children, often poorer families. As
well, they mark a dramatic change in
Israel's policy.
Since declaring statehood in 1948, one of the country's main
objectives has been to populate itself, both by
encouraging immigration from around the world, and
encouraging growth from within, through incentives for
bigger families. In 1948 there were 650,000 Jews living in
Israel. By 1970 there were more than 2,500,000, and today
there are 5.4 million Jews living in Israel. Some of the
credit for growth may be given to a governmental body
created in 1967, called the Israel Council for Demography,
whose main function seems to have been to encourage
childbirth by providing incentives for couples raising
large families such as education, housing and insurance
benefits.
Not everyone is incensed over the cutbacks. Rebecca, a mother of
five and full time employee outside her home in
Jerusalem, figures that her family will receive around NIS
1000 ($232) less per month, but that they'll just have to
find another way to make up the difference.
"I think that anyone who has lots of kids expecting the
government to feed them needs to rethink some of their
values," she says. "But what annoys me is at the same
time, the government isn't proportionately lowering the
income and other less direct taxes, to encourage the work
force. If the government is taking so much away, then at
least let people's income get to them rather than be taxed
too."
Women Face Cuts in Health Care, Rise in
Retirement Age
An estimated 500,000 wives work as homemakers in
Israel and up until now their health care has been covered
by their husbands' jobs. Under the new plan, these women
will now have to pay NIS 70 ($16) per month. In addition,
other health benefits will be cut. Nina Devere, former
member of the national board of directors of Emunah Women,
an Israeli organization dedicated to education and social
welfare, says these cuts will mainly affect poor women.
"Firstly, women who don't work are usually poorer than women who
do and they are the ones who must now pay the health tax,"
Devere says. "As well, health care will go down, because
these people don't have the 20 shekels ($4.50) for the
co-payment that will be required."
One possible alternative to the health tax is currently being
debated in the Knesset, the Israeli parliament. Instead of
drawing the needed funds from housewives without salaries,
the money can be appropriated by slightly lowering the
amount every worker can claim as a tax allowance.
And according to
Gera, there are other ways the government might find its
necessary funding. On August 1, a new tax reform will come
into effect, providing a reduction in taxes levied on
those in the higher income brackets. This reform will cost
the country 2 billion shekels ($455 million) in income.
Gera's solution? Stop the new tax reform from happening
until another source of funds can be found.
"We're saying hold the reform; give this money in benefits and go
back to the drawing board. You cannot give breaks to the
rich at the cost of women," insists
Gera.
Until now, the official age for women to retire with full pension
was 60, with an option to work until age 65. This number
has now been raised to 67, and since two-thirds of women
actually retire by age 55, these women will be asked to
wait not 5, but 12 years before they can receive any of
their benefits. This part of the plan will be phased in
over 20 years, with three or so months being added on to
the retirement age every year. The retirement age for men
in
Israel has been raised from 65 to 70. It will be phased in
the same as with the women.
Cuts Birth a New Protest Movement
For months, as the new plan was being discussed, arguments raged,
the country lived through a number of union strikes, and
groups of women gathered in protest of the proposed
cutbacks. Even now with the bill having passed, the
individual protestors refuse to quit, and social rights
activists are already preparing seven petitions arguing
that the laws are undemocratic and violate civil rights.
Among those items being petitioned against are child
allowance and pension reform, in hopes that the finance
ministry will be forced to rethink the new reforms and
find alternate ways to save on governmental spending. And
in
Jerusalem, in front of the Finance Ministry, tents have
been erected. More women, children, fathers and mothers
arrive each day, demanding to be heard by their
government.
Gera
calls this a new protest movement. "The cry of a people is
taking wing," she says.
For more information:
Israel Women's Network:
http://www.iwn.org.il/iwn.asp
