Badenoch Unveils £36 Billion Welfare Cuts Plan Targeting Disability Benefits and Migrant Claims
Conservative leader Kemi Badenoch has set out proposals to reduce annual welfare spending by £36.1 billion by the end of the next Parliament. The plans, published on 10 November 2026 under the title Welfare that Works, include changes to sickness and disability benefits, restrictions on benefit eligibility for some foreign nationals and restoration of the two-child benefit cap.
Where the Conservatives say savings would come from
The party estimates annual savings of £13.7 billion from sickness and disability benefit reforms, £9.5 billion from restrictions affecting foreign nationals without EU settled status, £3.1 billion from restoring the two-child benefit cap, £2.8 billion from changes to child Disability Living Allowance, and £1 billion from fraud and error measures. These five categories total £30.1 billion; other proposed reforms account for the remainder of the stated £36.1 billion target. The figures are party estimates, not independently certified savings.
Proposed disability benefit changes
The Conservatives propose limiting some claims involving what they describe as mild mental health conditions and routine back or joint pain. They argue that the system should focus more on supporting employment. The Institute for Fiscal Studies notes that current eligibility is assessed by functional limitations rather than diagnosis alone. Many claimants have more than one condition, potentially making diagnosis-based restrictions less effective at generating the forecast savings.
Restrictions affecting foreign nationals
The party estimates £9.5 billion in annual savings from limiting benefit access for foreign nationals without EU settled status. The IFS says the figure is uncertain partly because some affected people may be eligible to become British citizens, changing their benefit eligibility. It also cautions that some affected households rely on benefits for much of their income.
Two-child limit and support for disabled children
The Conservatives would reinstate the two-child benefit cap, which they estimate would save £3.1 billion a year, and reform child Disability Living Allowance for certain learning and behavioural conditions, which they estimate would save £2.8 billion. Child Poverty Action Group has warned that restoring the two-child cap would increase child poverty. Badenoch argues that higher employment and earnings are essential to tackling poverty.
Labour response
Labour has criticised the Conservatives’ costings and warned of hardship for affected families. It argues that welfare spending also increased during Conservative governments. The Government is pursuing its own employment and welfare policy work, including reviews led by Alan Milburn and Sir Stephen Timms.
Independent assessment and next steps
In an assessment published on 10 November, the IFS said £36 billion would represent about 21% of projected working-age benefit spending in 2029–30 if achieved. It identified substantial uncertainty over the two largest savings measures and said losses could be concentrated among particular claimants. The Conservative proposals are opposition policies, not current law; implementing them would require detailed rules and, in many cases, legislation.