The cabinet today approved an extension of the subsidy for afternoon daycare. Discounts will be given not only to the most economically disadvantaged communities (Groups 1-3), but to all communities in Israel. The subsidy will be differential, so that the more disadvantaged communities will receive a larger subsidy. The subsidy is part of Minister of Finance Moshe Kahlon's family assistance program.
Under the plan, devised in cooperation with the Union of Local Authorities in Israel, families living in socioeconomic Group 4 (Ofakim, Kiryat Malachi, Yeruham, Kafr Yasif and others), will receive a NIS 350 subsidy per month per child for an afternoon daycare center from age 3 to age 8.
Families living in socioeconomic Group 5 (Ashdod, Tiberias, Mitze Ramon, Beer Sheva, and others) will receive a NIS 300 subsidy per month per child for an afternoon daycare center from age 3 to age 8. Families living in socioeconomic Group 6 (Karmiel, Gedera, Pardes Hanna-Karkur, Shlomi, Kfar Yona, Netanya, Rehovot, and others) will receive a NIS 300 subsidy per month per child for an afternoon daycare center for children in first and second grade. Families living in socioeconomic Group 7 (Haifa, Nesher, Kiryat Motzkin, Kiryat Bialik, Petah Tikva, Rishon Lezion, Rosh Pina, Yehud, and others) will receive a NIS 200 subsidy per month per child for an afternoon daycare center in first and second grade.
Families living in socioeconomic Groups 8-10 (Tel Aviv, Modi'in, Maccabim-Reut, Even Yehuda, Ra'anana, Kochav Yair, Herzliya, Savyon, and others) will receive a NIS 150 subsidy per month per child for an afternoon daycare center in first and second grade. According to the Ministry of Finance, these discounts will save a net of NIS 1,500-3,500 per year for each child, and up to NIS 17,500 per child over a five-year period.
Kahlon said today, "Already in the coming months, thousands of shekels will already be added to the disposable income of parents. Real equal opportunity begins with employment possibilities, and an afternoon daycare subsidy is another way to make things easier for working families. This measure comes on top of the reduction of crowding in classrooms and adding a second kindergarten helper that I led, together with Minister of Education Naftali Bennett , and these are not the last measures. We'll go on making thing easier for working families in Israel, expanding services, and reducing the cost of living." Returning the compliment, Bennett said, "I congratulate my friend Minister of Finance Moshe Kahlon for an important supplement for education," a statement that also appeared in the announcement by Kahlon's office.
The cabinet also approved today a NIS 400 million supplement for the equalization grants for economically disadvantaged local authorities as part of the revision of the budgeting formula designed to narrow the gaps between advantaged and disadvantaged local authorities. NIS 370 million of this supplement was allocated for the most disadvantaged local authorities – Groups 1-4. The measure constitutes implementation of the first stage of the recommendations by the committee headed by Ministry of the Interior director general Mordechai Cohen and set up at the initiative of Minister of the Interior Aryeh Deri, with Kahlon's support.
Published by Globes [online], Israel Business News - www.globes-online.com - on May 21, 2017
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