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Thursday, 29 October 2026 Icelandic stories. Global audience.
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Icelandic state pays 16 million per month for some child residential placements

Some of Iceland’s most vulnerable children are placed in private facilities costing public bodies billions, according to an investigation by RÚV.

Aerial view of coastal headland and nearby town (Grafarvogur)
Image: Steinninn / Wikimedia Commons (CC BY 4.0) · licence, original (resized) Illustrative image.

Some of the most complex child residential placements in Iceland cost a reported 16 million per month for a single child, RÚV reported today. The investigation found that public funds flow from government bodies to private companies running such facilities, with total spending reaching into the billions, though the full company list and precise sums remain unknown.

According to RÚV, children with some of the most complex problems have for years been placed in privately run residential facilities, where some remain for many years. This system involves significant transfers of public money to private operators, but details about individual contracts or the breakdown of payments have not been disclosed.

As part of the report, RÚV journalists visited an apartment in Grafarvogur, a large residential district in Reykjavík, Iceland. The crew spent time in the apartment’s living room and noted that it was filled with many photographs of a young man who lived there.

Sources

Image: Steinninn / Wikimedia Commons (CC BY 4.0) · licence, original (resized) Illustrative image.