Around two million citizens, including 880,000 children, live below the poverty line in Israel
Palestinian citizens of Israel protest police inaction on curbing soaring violent crime on 22 January 2026 (Jalaa Marey/AFP)
Palestinian citizens of Israel are amongst the most impacted by worsening poverty rates in the country, an annual report reveals.
The findings published by the National Insurance Institute on Thursday show that two million people, including 880,000 children - more than a quarter of all children in Israel - were living below the poverty line in 2024.
Israel ranks second among member countries of the Organisation for Economic Co-operation and Development (OECD) in terms of child poverty rates, after Costa Rica, with 28 percent of children considered poor.
The report notes that social inequality has also deepened, as 65.1 percent of the poor come from disadvantaged populations, including the Palestinian community.
In 2024, 37.6 percent of Palestinian households fell below the minimum threshold. Haredi Jewish families followed in second place, with 32.8 percent living below the poverty line.
The institute highlighted the impact of Israel's genocidal war on Gaza and the increasing high cost of living as some of the main factors behind the rising poverty amongst families, children and the elderly.
Zvika Cohen, the institute's deputy director general, said that these issues have "exacerbated the problem, not created it".
"Without focused investment in children, young families and social services, poverty in Israel will continue to be passed from generation to generation."
Meanwhile, deputy director of research and planning at the institute, Nitza Kassir, noted the need for a social safety net to address the decreasing income levels, especially after the war.
Unable to make ends meet
Kassir stressed that the economic burden on Israeli citizens is not equal, as it is "deeper and more severe in populations whose economic situation is already difficult", with a need for integrating these communities into the workforce as well as paying them fair and adequate wages.
According to the annual assessment, 27.8 percent of households in Israel are unable to make ends meet, with Palestinian segments consistently ranking most disadvantaged as about half of the community is unable to cover all monthly expenses.
Israel data shows Palestinian citizens facing poorer health, economic conditions
Read More » These include expenses for medical treatments, prescription drugs and even hot meals.
Palestinian citizens of Israel are the descendants of Palestine's native population, which was violently displaced by Zionist militias during the creation of Israel in 1948.
Today, there are more than two million Palestinian citizens of Israel, which equates to 21 percent of the country's total population of 9.8 million people.
For decades, they have suffered under discriminatory laws and practices imposed by the Israeli state, and have long complained that they face difficulty accessing housing and public services.
Since October 2023, Israel has passed more than 30 laws that deepen a system of apartheid and repression against Palestinians, according to a report by the legal centre Adalah published in November.
The laws, enacted between 7 October 2023 and 27 July 2025, target a range of political and civil rights, including freedom of expression, protest and thought, citizenship and family life, equality and social rights, and the rights of detainees and prisoners.