nksg, you have failed to take into account what and_org has posted, namely, the agreement between the UK and Israel.
Download
this document, and then look at the chart on page 6 of 7. The relevant column is "Social Security agreement with UK".
and_org, the design of the ILR application form does not make it easy to know how to proceed. The point is that whilst Child Benefit is in the definition of Public Funds, as in para 6 of the Immigration Rules, that para. is followed by 3 small paras. that can effectively change the definition, in certain circumstances. Here para 6B is in play, and that says :-
.... a person (P) shall not be regarded as having recourse to public funds if P is entitled to benefits specified under ....
-: and then going on to quote relevant legislation.
So it could easily be argued that when answering the "Are you receiving Public Funds" question, the correct answer is "no", given that for you the Child Benefit is not Public Funds.