They gave everything
New Faces of Poverty: Reservists’ Families and Middle-Class Israelis Hit Hard by Two Years of War
Reservists left their homes, families, and careers to go out and defend Israel on October 7th and in the two years since. A new report details the impact the war and the ongoing reserves have had on the "war poor."
Two years of war, soaring living costs and new tax burdens have pushed tens of thousands of Israelis who never imagined themselves vulnerable into economic crisis, according to the 2025 Alternative Poverty Report published by the humanitarian organization Latet. The report warns that Israel is facing a widening social emergency that now reaches deep into the lower middle class, including families of reservists and households destabilized by extended military service and wartime disruptions.
Latet’s data paint a stark picture. An estimated 867,256 families now live with food insecurity, representing 26.9 percent of Israeli households and marking a 27.5 percent increase within a single year. More than 1.18 million children are food insecure, a ten percent rise, and nearly 445,000 of them are experiencing severe food insecurity. Altogether, 2.8 million people are food insecure in 2025, with severe cases up 29 percent.
The most troubling finding, according to Latet, is the emergence of “new poor” families: dual-income middle-class households that maintained stability before the war but have since been tipped into crisis. Extended reserve duty, a hike in VAT and national insurance, and a dramatic rise in household expenses have overwhelmed budgets that once balanced.
Latet calculates the minimum monthly cost of living for a family of four at 14,139 shekels. Two minimum-wage salaries total 12,495 shekels, leaving a monthly deficit. Considering the average number of earners per household (1.35), monthly income drops to 8,403 shekels, roughly 40 percent below the minimum cost of living. Even among aid recipients, 83.2 percent have at least one employed adult, yet remain trapped in poverty.
Latet CEO Eran Weintrob called the situation a “tsunami warning,” urging the government to assume responsibility for food security and establish a national anti-poverty authority. Founder Gilles Darmon argued that if Israel could increase the defense budget by over 60 billion shekels without destabilizing the economy, it can surely invest “the few billions needed” to bring poverty back to OECD norms.
The report also highlights a sharp rise in mental health strain. Low-income populations report symptoms of trauma, depression and anxiety at nearly double the rate of higher-income Israelis. 62 percent of aid recipients describe their mental health as poor. 83.6 percent of those needing psychological care were forced to forgo it due to cost.
Meanwhile, longstanding poor families have seen their situation deteriorate even further. Nearly 60 percent of aid recipients say their financial condition worsened this year. Over 54 percent report declining employment stability since October 7.
Latet concludes that without immediate, systemic intervention, both old and newly impoverished households face deepening and potentially lasting hardship.