The Conservatives are proposing significant cuts in welfare spending to fund an increase in defence expenditure

In a speech on 3rd September, Kemi Badenoch set out her party's plans to fund an increase in defence spending to 3% of GDP.  These included reinstating the two-child benefit cap, reducing the Local Housing Allowance (LHA) to the tenth percentile, and removing the VAT exemption from the Motability vehicle leasing scheme for disabled people.  Rachael Williamson of the CIH said that the proposed changes to the LHA would "almost certainly increase financial hardship and homelessness", while "any short-term savings to the welfare bill could quickly be outweighed by higher costs to councils, the NHS and other public services dealing with the consequences of people losing their homes".