The Cabinet has reversed itself and agreed to increase the allowances granted families of four or more children, including Arab families. Premier Shimon Peres promised, moreover, that the poorest 20 percent of the population will receive full compensation for cost-of-living increases.
The Cabinet had originally decided to raise child allowances by 11 percent, but only for families with a member who served in the armed forces. This excluded the vast majority of Arab families inasmuch as Arabs are barred from serving in the Israel Defense Force.
Cabinet sources said that decision would have meant double discrimination against Arab families because they do no receive the supplementary payments from the National Insurance Institute made automatically to persons leaving the armed forces on completion of military service.
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