Opposition leader MK Isaac Herzog (Zionist Union) blamed Prime Minister Benjamin Netanyahu (Likud) for the bleak report.
The figure is the highest rate in the developed world.
In addition, the government decision called to establish a savings account for needy children – though this measure is not expected to take effect until 2017.
According to Central Bureau of Statistics data, in 2014 there were 776,500 children living below the poverty line.
The party is calling for separation of the administrative bureaucracy and medical committees in an effort to reduce the long wait times at the NII.
The campaign, "From three one is hungry" aims to raise awareness of the poverty statistics and encourage youth to take responsibility to help combat the phenomenon.
One in three children are poor, report says
Un recul est amorcé mais les chiffres restent inquiétants.La classe politique utilise le rapport à des fins électorales.
Opposition leader says the Taub Center report is a "red card" for Netanyahu who has caused the entire state to be in overdraft.
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