The district council will make all young people leaving the care system exempt from Council Tax in properties they rent or own until they are 21.
Exemptions currently mean that the majority of care leavers do not pay Council Tax, including those in full-time education, students, those undertaking youth training, apprentices working for a qualification who earn less than £195 per week before tax and those in supported accommodation.
Around 18 care leavers who do not fall into these categories are currently liable for Council Tax at the point when they wish to live independently and rent or buy their own home.
Following a non-key decision by the SKDC Cabinet Member for Finance, Coun Adam Stokes, these individuals will also be exempt from the age of 18 to 21.
The move follows an approach to Coun Stokes by Lincolnshire County Councillor Rob Foulkes.
Coun Stokes said: “We are grateful to Coun Foulkes for raising this issue with us. We believe that all young people who are leaving local authority care deserve to be treated equally when it comes to Council Tax and deserve our help in the first few years of living independently.
“The new rules may only affect fewer than 20 people across the district, but to these individuals, this help could make a big difference at a point when they begin managing their own finances.”