Young people leaving care in Greenwich will soon be exempt from paying council tax.

Greenwich council agreed that people leaving supporting care will not have to pay council tax until they reach the age of 25.

The proposal put forward at the council meeting on March 29 said that young people leaving care “can be amongst the most vulnerable in our community”.

Research from the Centre for Social Justice shows that 57 per cent of young people leaving care find it difficult to manage their money and avoid debt.

The estimated reduction in total council tax liability would be £87,000, but that the actual figure is estimated to be much lower after taking into account uncollected arrears.

There are approximately 450 care-leavers aged 18-25 in Greenwich that would benefit from such an exemption, according to The Children’s Society.

The plans were agreed upon by the council and will come into effect from 2018/19 onwards.

Councillor Matt Hartley, leader of Greenwich Conservatives, said: “I am delighted that from care leavers up to the age of 25 in Greenwich will not have to pay Council Tax from next April.

“Young people leaving care can be amongst the most vulnerable in our community – and we need to do everything we can to support them to manage their money, which can be a particular challenge.

“This is an example of policy that will have a big impact for a relatively small cost.

“I would like to thank The Children’s Society for all their work campaigning for this move, and I hope other many more councils in London and beyond will follow suit.”

Greenwich joins a growing list of councils to adopt the measure, including Cheshire East, Birmingham, Wolverhampton, North Somerset, Milton Keynes, Coventry and the London Boroughs of Islington and Hammersmith & Fulham.