Auditor calls for better planning of school mergers

Iceland’s National Audit Office has urged ministries to prepare institutional mergers carefully and build support for them, after several planned school mergers were abandoned, apparently because of opposition from staff and managers, mbl.is reported.

The office said in a new report that ministries should provide clear leadership when pursuing such changes. It also said there are still opportunities to merge institutions in education and culture to improve efficiency and reduce costs.

The findings are part of a rapid review of agencies under government ministries. The report was presented to Alþingi’s Constitutional and Supervisory Committee along with two follow-up reports.

The number of agencies under Iceland’s ministries fell from 155 at the end of 2020 to 143 at the end of 2025. At least 16 more are expected to be removed or merged this year, bringing the total to 127 and representing an overall decline of 18.1 per cent since 2020. Further reductions are planned.

At the end of 2025, 43 agencies had 20 or fewer full-time positions, compared with 44 in 2020. The number of agencies with 21 to 50 positions fell from 41 to 29 over the same period. The audit office said further mergers among the smallest agencies should be explored with efficiency in mind.