The Budget Cut That Cuts Too Deep

If the state wants to slash child income stipends as a bid to get the ultra-Orthodox to work, it needs to have a mechanism in place to help those poor families who do work.

Seven billion shekels -- that's what the state spends on child stipends every year. The stipends are paid to all parents, regardless of income. This makes the child stipends a very simple instrument, and a very effective one, too. They're effective mainly at increasing the income of poor families. A family with three children, for instance, receives NIS 700 a month in stipends.