Conservatives to bring back the two-child benefit cap and use the savings on defence

Today [Friday 6^th March 2026], The Conservative Party is setting out its plans to put our national interest first – by boosting defence spending by a further £1.6 billion a year through cutting welfare.  

This Labour government have failed to put our national interest first, promising to hit 3% of GDP spent on defence in the next Parliament, but with no clear plan to deliver, while raising welfare spending to record levels.  

That is why next Conservative Government will bring back the two-child benefit cap, saving over £3.2 billion a year. Under our Golden Economic Rule, half of these savings will be used to reduce the deficit. The remaining £1.6 billion will be allocated directly to defence spending.  

The Conservatives have said they will use part of this £1.6 billion to fund 6,000 new Regular Army soldiers and 14,000 new Army Reservists as well as the accommodation, and equipment they need - an uplift of 20,000 new troops that would make our Army an effective and deployable force again.  

This significant spending commitment would grow our Regular Army to 80,000 and Army Reserves to 40,000 which would be the largest net increase to size of the Regular Army under any Prime Minister since the Second World War.  

This latest additional investment comes on top of our plans to create a Sovereign Defence Fund, mobilising £17bn in public and up to £33bn in private capital for defence investment. And our promise to scrap the Chagos deal could free up £35 billion to be directed to real national priorities. 

Defence of the realm must be the first priority of any Government but only the Conservatives can be trusted to deliver this.  

Labour have obfuscated over their 3% spending plans, endlessly delayed their Defence Investment Plan, and left Armed Forces chiefs to warn of a £28 billion blackhole in the Ministry of Defence budget whilst preparing to hand over taxpayer's money for the humiliation of surrendering the Chagos Islands.  

Meanwhile Reform have zero plans to support our armed forces, with Nigel Farage's one-man band having no Defence spokesman and with Farage and the Party's top team having blamed NATO for Russia's barbaric and illegal invasion of Ukraine.  

Under Kemi Badenoch's Leadership we recognise that tough decisions are needed to keep Britain safe from the growing global threats, and our setting out clear plans to deliver the security our country needs.  

Kemi Badenoch MP, Leader of the Conservative Party, said: 

“This Prime Minister's priorities are completely wrong. As we saw at the Spring Statement this week, Keir Starmer and Rachel Reeves have a plan to raise benefits and no plan for how to properly fund our armed forces. 

“With a war in Europe and now also in the Middle East, it's more important than ever that the government gives our military the backing it needs. Instead, Keir Starmer is pandering to his backbenchers with more welfare giveaways - he simply doesn't have the backbone to take tough decisions. 

“I am clear the Conservatives will always put Britain's national security first. That means prioritising defence over welfare and boosting our armed forces with 20,000 new troops.” 

James Cartlidge MP, Shadow Defence Secretary, said: 

“The world has changed and everyone knows we need to spend more on defence. But all other parties struggle to answer one question - where will they get the money to pay for it. 

“Taking tough decisions requires real leadership and that is what Kemi is showing today. 

“Cutting welfare to fund defence means we can commit to a bigger British Army of 80,000 Regulars and 40,000 Reservists. 

“Britain needs an Army that is credible and deployable to tackle the threats we face today, and that's what we would deliver, because of our willingness to make tough choices.” 

ENDS 

Notes to Editors 

• Labour's much-vaunted Strategic Defence Review was late – and a damp squib. Labour committed to publishing their flagship Strategic Defence Review in Spring 2025 but ended up publishing it in the summer. In addition to being overdue, the Review kicked big procurement decisions down the road, because Labour has not got a plan to hit 3 per cent of GDP on defence (CapX,30 July 2025, link; Hansard, 2 June 2025, Vol.768, Col.54, link).    

• Labour's Defence Investment Plan is still not published, despite the government committing to complete it in Autumn 2025. We are still yet to see a Defence Investment Plan, which is desperately needed as the world around us gets more dangerous(MoD, Strategic Defence Review, June 2025, link). 

• Since the election, Labour have dithered and delayed over the decision to increase defence spending whilst the world gets more dangerous. On 25 February 2025, seven months after Keir Starmer scrapped the previous Conservative Government's fully funded increase to defence spending, Labour announced defence spending would reach 2.5 per cent of GDP by 2027. They still have no plan for hiting 3 per cent (PMO, Press Release, 25 February 2025,link). 

• Labour is reportedly facing a £28 billion black hole in its defence spending plans. These reports confirm what we've been warning for months – Labour's plans for defence spending fall a long way short of what is needed to actually keep us safe. The Defence Investment Plan is late because the money just isn't there to fund it. Labour has prioritised higher welfare spending over defence of the realm and our armed forces are paying the price (The Daily Telegraph, 8 January 2026, link).

• Labour's Chagos Surrender Agreement will cost £35 billion over the next 99 years and leave our country weaker and poorer. Labour did not have to makeirresponsible deal, which will mean we have less money to spend on ramping up our defence capabilities in a dangerous world, which we need to do to keep Britain safe. And it is yet another burden on British taxpayers who are suffering under Labour's punitive tax hikes and the Winter Fuel Payment cut (The Daily Telegraph, 10 August 2025, link).