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Conservatives pledge to boost defence spending by bringing back two-child benefit cap

The Conservative Party has announced plans to reintroduce the two-child benefit limit and use the funds raised to increase defense spending if they come to power.

The policy, first introduced by the Conservatives in 2017, limits child tax credit and Universal Credit payments to the first two children in most households.

The move comes after Labour’s bill to remove the cap successfully passed the House of Commons and is now advancing through the House of Lords.

Conservative Party leader Kemi Badenoch has criticized Sir Keir Starmer, saying his priorities are “all wrong” and that he has “no plan” to adequately fund the military.

The party estimates that reversing the removal of the cap would raise more than £3.2bn a year, half of which would go towards reducing the national deficit and the rest for defence.

This will fund the recruitment, as well as accommodation and equipment, of 20,000 new soldiers, including 6,000 regular soldiers and 14,000 reservists.

Ms Badenoch said: “The Prime Minister’s priorities are all wrong. As we saw in the spring statement this week, Keir Starmer and Rachel Reeves have a plan to increase benefits, but no plan for how to properly fund our armed forces.”

“With a war ongoing in Europe and now the Middle East, it is more important than ever that the Government gives our military the support it needs.

Conservatives say reversing the policy would raise more than £3.2bn a year
Conservatives say reversing the policy would raise more than £3.2bn a year (James Manning/PA)

“Instead, Keir Starmer is pandering to backbenchers with more welfare giveaways – he doesn’t have the backbone to make tough decisions.

“I’m confident the Conservatives will always put Britain’s national security first. That means prioritizing defense over prosperity and strengthening our armed forces with 20,000 new troops.”

Shadow defense secretary James Cartlidge said: “Cutting benefits to fund defense means we can commit to a larger British Army of 80,000 regulars and 40,000 reservists.

“The UK needs a reliable and deployable Army to tackle the threats we face today, and because of our willingness to make tough choices, we will deliver that.”

The commitment comes as calls for increased defense spending intensify amid conflicts in the Middle East.

Sir Keir has pledged to spend 2.5% of national economic output, measured as gross domestic product (GDP), on core defense by April 2027, with this rising to 3% in the next parliament.

The Conservatives have said that if they come to power, they would create a sovereign defense fund that would generate £17bn of public investment and up to £33bn of private capital.

The Conservatives say canceling the deal to return the Chagos Islands could free up up to £35bn.

The move to lift the benefit cap proved popular, with MPs voting overwhelmingly in favor in February.

The change will leave around 400,000 children living in poverty from April, when the Government wants it to come into force, according to analysis by the Joseph Rowntree Foundation.

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