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Learning difficulties charity Mencap has welcomed the extension of the eligibility of the child care tax credit to parents of disabled children, which will entitle them to help with the cost of child care at home.

The extension, announced in the Budget, will mean child care tax credit can be claimed for child care provided in the home by registered nurses and childminders.

Mencap has campaigned on this issue because many children with learning difficulties require intensive support and care that can only be met in the child's home.

Mencap's head of campaigns, Richard Kramer, said: "These parents have little support to meet the immense costs of child care, which needs to be done at home because many disabled children are unable to access nursery buildings or do not live near centres with specialist staff to look after them."

But the president of Mencap has warned that the new integrated tax credit will not act as an incentive for many people with learning difficulties to work.

At the second reading of the Tax Credit Bill in the House of Lords last week, Lord Rix said many people with learning difficulties were often employed part time and worked less than 16 hours a week. This meant they could not take advantage of the new integrated tax credit, as it was only available to those working 16 hours or more.

"Unfortunately, only a few people with learning difficulties are afforded paid employment and working more than 16 hours is not a realistic option for most of them," Rix said.

"The government should look at alternatives to encourage them to work, as it has acknowledged that people with learning difficulties are one of the most marginalised groups in the workforce," he added.

The charity is urging the government to consider two alternatives to the tax credit eligibility: a phased entry that would enable claimants to gain a foothold in the labour market by working less than 16 hours per week for a limited period; and an increase in the income support disregard from £20 to £35. This would allow people with learning difficulties to work up to eight hours at the minimum wage without losing any income support.