Palestinian authority allocates domestic funding for social allowances supporting persons with disabilities and older persons in the West Bank

RAMALLAH (ILO News) - The Palestinian Authority (PA) has dedicated the equivalent of 3 million euros from its budget to ensure the continued rollout and payment of social allowances to 15,000 individuals with severe disabilities and nearly 18,000 older persons in the West Bank. The allowances, dedicated in November, provide income support to groups facing high levels of social and economic exclusion, helping them maintain an adequate standard of living at a time of unprecedented crisis.

Social allowances for older persons and individuals with severe disabilities were launched earlier in August 2024 by the Ministry of Social Development (MoSD). This initiative, designed in partnership with the International Labour Organization (ILO), stemmed from a 2023 decision by the Council of Ministers, with 67 million EUR funding secured through contributions from the European Union (EU), France, and Spain.

The new allowances provide regular cash transfers by the PA to vulnerable individuals to ensure a minimum level of income and life in dignity, and tackle poverty and inequality, in line with the ILO Social Protection Floors Recommendation (R202). This marks a significant step towards ensuring right-based social protection for all Palestinians in the West Bank and preventing the Palestinian social protection system from collapsing.

"The decision of the Palestinian Authority's to finance social allowances underscores its commitment to enduring support in times of hardship, ensuring the capacity to sustain vulnerable groups throughout the ongoing times of crisis,” said Minister of Social Development Samah Hamad. “Strengthening social protection has long been a priority for the Ministry, as reflected in the National Policy Agenda and the Ministry’s Social Protection Inclusivity and Justice Initiative. Ensuring the extension of social allowances to the Gaza Strip will be paramount in sustaining the country's relief and recovery strategy, reinforcing its alignment with national social protection objectives and its commitment to leaving no one behind" Hamad added.

“Social security is a human right throughout the lifecycle, and the extension of social protection floors is vital, especially at times of crisis,” said ILO Regional Director for Arab States Ruba Jaradat. “The ILO supports the roll-out of universal, comprehensive social allowances in OPT, and remains committed with its social partners to the development of a rights-based social protection system in line with international social security standards, building on the principles reaffirmed in 2021 by the Arab Ministerial Forum on the future of social protection in the Arab region. Moving forward, it will be crucial to ensure the regular and timely disbursement of the newly established rights-based social allowances, while also strengthening the Palestinian Authority’s commitment to allocate domestic funding to sustain and expand these vital social protection measures,” Jaradat said.

The EU, together with EU Member States, has been a key partner in reinforcing the social protection sector in Palestine, providing both direct financial support and technical assistance.

“The EU commends the Ministry of Social Development for maintaining the Cash Transfer Programme (CTP) payments, despite the challenges posed by the current situation. This payment also underscores the Palestinian Authority’s commitment to implement the recently introduced social allowances for the elderly and people with severe disabilities, which are crucial steps towards building a right-based and life-cycle social protection system,” said Ibrahim Laafia, EU Head of Cooperation, “Social protection is a human right. The EU, alongside other European Development Partners, remains committed to ensuring that all Palestinians – starting from those facing specific vulnerabilities – are adequately supported and protected, even more so during crises.”

Throughout 2024, the Ministry of Social Development delivered seven monthly payments of 250 new Israeli shekels (equivalent to US$70) per person per month to 15,000 individuals with severe disabilities and nearly 18,000 older persons in the West Bank. Although the regularity of payments was significantly impacted by the fiscal crisis facing the PA, with a portion of the funds originally allocated for social allowances redirected to cover civil servants' salaries earlier in 2024, this assistance has been a vital lifeline for some of the most vulnerable populations. All persons with a severe disability and older persons above 65 years of age and living in the West Bank are eligible to the benefit, provided they are included in the national social registry. Plans are underway to expand the registry to allow new beneficiaries to access the programme.

The scale up of social allowances comes at a critical juncture, as the national system navigates the ongoing crisis and the far-reaching consequences of the war in the Gaza Strip. Delivering much needed support through the national system is pivotal not only to provide immediate relief to vulnerable populations but also to bolster long-term recovery efforts. Lifecycle social allowances now represent the core component of the National Cash Transfer Program (NCTP), which also includes a scheme targeted at poor households. Launched in 2010, the NCTP has been providing quarterly payments to approximately 115,000 Palestinian households, of which 75,000 in Gaza. Plans are afoot to expand the pool of beneficiaries in the West Bank and for MoSD to extend the new social allowances to the Gaza Strip once circumstances allow.

Under the framework of the EU-funded project “Strengthening capacities towards a coherent national social protection system across the humanitarian development and peace nexus”, the ILO continues to provide essential technical support for the design of parameters, eligibility criteria, operational modalities, financing and costing of both allowances, in line with international social security standards. Additionally, the ILO remains dedicated to advancing the harmonization of social protection interventions across the nexus, fostering coherence and collaboration among stakeholders to strengthen the social protection system and enhance its capacity to respond effectively to ongoing crises.

There is an increasing recognition in the international social protection community on the importance of strengthening national social protection systems in fragility and especially protracted crisis context. The ILO supports social protection reforms in these settings, identifying context-specific entry points for engagement ‘across the nexus’. The normative lens of international social security standards, based on the individual right to social security, can serve as a compass to orient ‘nexus’ actors towards building social protection systems . In line with this vision, in the coming months, the ILO in dialogue with partners, will explore options to support MOSD in running a small-scale pilot to extend social allowances to the Gaza Strip.