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World Economy
Apr 11, 2026

Tories plan to reinstate two-child benefit cap to fund massive defence spending

AI Summary
The Conservative Party plans to reinstate the two-child benefit cap to fund a significant increase in defence spending, aiming for the largest peacetime rearmament programme in UK history.

The Conservative Party has announced plans to reinstate the two-child benefit cap in order to fund a substantial increase in defence spending. According to Kemi Badenoch, the Tory leader, this move would support the largest peacetime programme of rearmament in the UK's history. The party aims to recruit 6,000 full-time soldiers and 14,000 reservists, marking the largest net increase in British troops since the Second World War.

Badenoch criticised the current government's lack of readiness for war, citing recent global events. She emphasised the need for the UK to reassert itself as a global power and committed to increasing defence spending. The Tories claim they can raise £20bn towards this venture by reinstating the two-child benefit cap and reallocating funds earmarked for net zero projects.

The announcement comes amid tensions with the US over the UK's involvement in the conflict with Iran. Badenoch expressed concern over Donald Trump's public criticism of UK Prime Minister Keir Starmer, highlighting the importance of maintaining western bonds in the face of global threats.

The Labour government has pledged to spend 2.5% of GDP on defence by 2027, increasing to 3% in the next parliament. However, they are under pressure to publish a defence spending plan, with reports of tensions between the Ministry of Defence and the Treasury.