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UK to fund 3% defence target via welfare savings

9/7/2026

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Badenoch Boosts Defence

On 3 September 2026, minister Kemi Badenoch announced UK will fund 3 % GDP defence target by reinstating two-child benefit cap and welfare savings.
Welfare reforms—housing-benefit cuts and ending Motability VAT—should save £5 bn for defence.
Labour says defence spending rise is biggest since Cold War, eclipsing 14 years of rule.
Minister Andy Burnham pledged path to raise defence spending to 3.5 % of GDP by 2035.

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Badenoch Funds Defence

Treasury minister Kemi Badenoch announced on 3 September 2026 that government will fund defence target by reinstating the two-child benefit cap and other welfare savings.
Critics warned the benefit-cap reversal would deepen hardship for working families facing high borrowing costs and possible tax hikes.
Borrowing costs have risen to a 28-year high, tightening fiscal space for defence plan.
Liberal Democrat Daisy Cooper said it ignored Brexit trade barriers, urging a defence deal.

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Badenoch Boosts Defence

On 3 September 2026, minister Kemi Badenoch announced UK will fund 3 % GDP defence target by reinstating two-child benefit cap and welfare savings.
Welfare reforms—housing-benefit cuts and ending Motability VAT—should save £5 bn for defence.
Labour says defence spending rise is biggest since Cold War, eclipsing 14 years of rule.
Minister Andy Burnham pledged path to raise defence spending to 3.5 % of GDP by 2035.

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