Half of Israeli toddlers not in regulated childcare, report finds
Of over 540,000 children aged 0–3 in Israel, only about half attend officially licensed childcare facilities, while nearly 114,000 are in unlicensed nurseries.
In Israel, childcare for children under three is emerging as a pressing issue. A report published Wednesday by Yediot Aharonot reveals that of more than 540,000 infants and toddlers in the country, only about half attend officially regulated childcare facilities.
Nearly 114,000 are reportedly placed in unlicensed nurseries or daycare centers.
The situation is particularly concerning given the Supervision Act of 2021, which aimed to extend state oversight to private childcare institutions. Since its implementation, however, the law has faced significant administrative and financial hurdles.
Budget cuts pose the biggest challenge.
The funds allocated to supervise daycare centers are projected to fall sharply in 2026, dropping to just 46 million shekels compared with roughly 190 million in 2023. Experts warn that this reduction could weaken efforts to ensure the safety and well-being of young children.
The decrease in oversight resources is expected to have a particularly strong impact on illegal childcare centers. Israeli tax authorities estimate that between 1,000 and 1,500 daycare facilities operate without authorization, bypassing educational and health standards while avoiding taxation.
Since August, the Ministries of Education and Social Affairs have identified 470 unlicensed daycares. Contrary to popular belief, these establishments are not confined to the Orthodox sector, though that group is often highlighted in public debate. Authorities have also observed a rise in nurseries failing to register with tax authorities.
Early childhood experts say the growth of unregulated facilities presents a dual problem: it endangers children’s safety and erodes parents’ trust in the childcare system, while also creating unfair competition for compliant institutions.
Many voices are now urging the government to reassess budget priorities and strengthen oversight to prevent care for the youngest children from becoming a neglected area of public policy. With Israel’s birth rate remaining high, providing safe, regulated childcare for toddlers is increasingly recognized as a critical social challenge.