The formal development of Iceland’s Act on the Integration of Services in the Interest of Children’s Prosperity (“Prosperity Act”) began with a 2018 conference attended by politicians, NGOs, stakeholders, and the public. At this event, a declaration of intent was signed by all relevant ministers, and a committee with representatives from all political parties in Iceland’s parliament was established. The Ministry of Education and Children was assigned the lead role in introducing and implementing the Act.

In 2019, open consultations continued as part of the drafting process. Before the bill was presented to Parliament, an economic impact assessment was conducted to estimate costs and projected returns for both the government and municipalities. In June 2021, the Prosperity Act was unanimously approved by Parliament and came into effect on the 1st of January 2022. Implementation commenced immediately at both national and local levels.

The Prosperity Act seeks to enhance child well-being by providing comprehensive services to children and families through early intervention. To achieve this, a coordinator is assigned to any child in need of initial support or assistance. The coordinator's role is to offer information and guidance on available services, ensuring access and continuity of care. If further targeted assistance is required, the coordinator continues to monitor and facilitate the integration process. Typically, coordinators operate within healthcare, preschools, primary or secondary schools, or the social services of a municipality.

The services offered are organised into three levels. The primary level consists of basic services available to all children and parents, such as education, sports, and general health services. Early support is provided based on an initial assessment of the child's needs, with the coordinator working at this level. The secondary level offers individualised and structured support aimed at ensuring a child's well-being. If the assessment indicates the need for secondary level support, a Case Manager is assigned to the child or family. This Case Manager is responsible for providing access to services, designing a support plan, and overseeing its implementation. Tertiary level services involve specialised support to prevent any threat to the child's well-being. All services promoting children's well-being must prioritise the child's best interests. Service providers are expected to respect the rights and responsibilities of parents and caregivers, as well as the child's own rights, considering the child’s views according to their age and level of development.

To track the well-being of children and ensure the Prosperity Act's implementation, the Icelandic government has created a dashboard featuring five key dimensions of child well-being: Education, Quality of Life, Health and Wellbeing, Security and Protection, and Participation and Social Connection. This dashboard offers data that government bodies and municipalities can utilise to prioritise projects, allocate funding, and shape policy decisions.

While drafting the Prosperity Act, the Minister of Education and Children commissioned a third-party economist to assess its cost-effectiveness and economic impact on both the state and municipalities. The analysis predicted that the Act would lead to a reduction in adverse childhood experiences and enhance children’s capacity to cope with them.

The cost-effectiveness of the changes will take several years to materialise, that is, until the children who benefit from the new services reach adulthood. The impact assessment showed however that the legislation is cost-effective, offering returns comparable to other profitable investments made by the Icelandic government. The Ministry of Education and Children now has a dedicated department for data collection and analysis, which will continue to refine evaluation methods, determine where action is needed, what type of intervention is required, and assess the effectiveness of these actions.

The Prosperity Act takes an integrative, early-intervention approach to enhancing children's well-being, with a dashboard that offers a detailed view of its implementation and outcomes. Early investment in children can reduce the occurrence of adverse childhood experiences and mitigate their impact. Furthermore, the accompanying Economic Impact Assessment demonstrates that investing at this early stage is cost-effective and will deliver long-term returns.

Iceland’s Ministry on Education and Children (2021), Act No 86/2021 on the Integration of Services in the Interest of Children’s Prosperity, https://www.government.is/library/04-Legislation/Act-Integration-Child-Services-Children-Prosperity-86-2021.pdf

Iceland’s Ministry on Education and Children (2023), Children’s Prosperity Handout, https://www.bofs.is/media/almenningur/Childrens-Prosperity-handout.pdf

OECD (2023), How’s Life in your country? Country notes, Iceland, https://www.oecd.org/wise/measuring-well-being-and-progress.htm#country-notes