Iceland’s child benefit system needs a complete overhaul

Iceland’s child benefit system should be reviewed from the ground up, according to Kolbrún Áslaugar Baldursdóttir, chair of parliament’s welfare committee. She presented 14 measures to combat child poverty in Iceland on Thursday, mbl.is reported.

The measures were developed by a working group appointed by the Ministry of Education and Children’s Affairs and were presented at a symposium on child poverty at Veröld – House of Vigdís.

“The system is old, very complicated and cumbersome. We have been getting help from universities and the academic community on how it can be changed,” Kolbrún told mbl.is.

The proposals include a comprehensive review of the child benefit system, scrapping upper-secondary school enrolment fees, establishing an incentive fund and reaching an agreement with ÍSÍ to ensure children have equal opportunities to take part in sports, regardless of their family’s finances.

The first steps have been funded with an allocation of 800 million krónur over the next five years, Kolbrún said. The measures were developed through extensive consultation, including with municipalities and non-governmental organisations. Some will begin immediately, while others need further assessment and planning.

Kolbrún said the proposed incentive fund would support people in the most difficult circumstances. She also wants to build agreement with sports clubs to reduce the cost of children’s participation, including fees for tournaments and the cost of training and competition equipment.

“All these extra costs are weighing heavily on parents who may have three children in sports. We have to find ways to reduce them,” she said, adding that sports and hobbies benefit children’s development and help prepare them for life.