This article explores the emergent trend of global educational policy which focuses on educational values such as well-being and holistic skills. It makes connections between the emergent trend of "education-as-flourishing" and current developments of extended education, using a specific case for illustration, i.e. school-age educare in Iceland. The author argues that there is an internal tension in the current educational global policy which emphasizes holistic skills and well-being in education but eventually produces a policy framework that overlooks the educational pathways of learners through extended education spaces. The case study shows that the manifold learning outcomes of extended education are largely overlooked in policy and practice. There are external and internal challenges at play that feed this tension, specifically a lack of agency of stakeholders and a supportive social structure. A new Act on Well-being of Children in Iceland encourages municipalities and professionals to align resources from diverse sectors, such as education, health, and social services. This study indicates a primary need for policy makers to work strategically with educators from all sectors to develop innovate educational practices within and outside of school to support the education and well-being of children and youth.