Edward Cardwell, 1st Viscount Cardwell

Liberal prime minister William Ewart Gladstone paid little attention to military affairs but he was keen on efficiency. In 1870 he pushed through Parliament major changes in Army organisation. Germany's stunning triumph over France proved that the Prussian system of professional soldiers with up-to-date weapons was far superior to the traditional system of gentlemen-soldiers that Britain used.[10] The reforms were not radical—they had been brewing for years and Gladstone seized the moment to enact them. The goal was to centralise the power of the War Office, abolish purchase of officers' commissions, and to create reserve forces stationed in Britain by establishing short terms of service for enlisted men.[11]

Cardwell as Secretary of State for War (1868–1874) designed the reforms that Gladstone supported in the name of efficiency and democracy. In 1868 he abolished flogging, raising the private soldier status to more like an honourable career. In 1870 Cardwell abolished "bounty money" for recruits, discharged known bad characters from the ranks. He pulled 20,000 soldiers out of self-governing colonies like Canada, which learned they had to help defend themselves.

The most radical change, and one that required Gladstone's political muscle, was to abolish the system of officers obtaining commissions and promotions by purchase, rather than by merit. The system meant that the rich landholding families controlled all the middle and senior ranks in the army. Promotion depended on the family's wealth, not the officer's talents, and the middle class was shut out almost completely. British officers were expected to be gentlemen and sportsmen; there was no problem if they were entirely wanting in military knowledge or leadership skills. From the Tory perspective it was essential to keep the officer corps the domain of gentlemen, and not a trade for professional experts. They warned the latter might menace the oligarchy and threaten a military coup; they preferred an inefficient army to an authoritarian state. The rise of Bismarck's new Germany made this anti authoritarian policy too dangerous for a great empire to risk.

The bill, which would have compensated current owners for their cash investments, passed Commons in 1871 but was blocked by the House of Lords. Gladstone then moved to drop the system without any reimbursements, forcing the Lords to backtrack and approve the original bill. Liberals rallied to Gladstone's anti-elitism, pointing to the case of Lord Cardigan (1797–1868), who spent £40,000 for his commission and proved utterly incompetent in the Crimean war, where he led the disastrous "Charge of the Light Brigade" at the Battle of Balaklava in 1854.

Cardwell was not powerful enough to install a general staff system; that had to await the 20th century. He did rearrange the war department. He made the office of Secretary of State for War superior to the Army's commander in Chief; the commander was His Royal Highness The Duke of Cambridge, the Queen's first cousin, and an opponent of the reforms. The surveyor-general of the ordnance, and the financial secretary became key department heads reporting to the Secretary. The militia was reformed as well and integrated into the Army. The term of enlistment was reduced to 6 years, so there was more turnover and a larger pool of trained reservists. The territorial system of recruiting for regiments was standardised and adjusted to the current population. Cardwell reduced the Army budget yet increased the strength of the army by 25 battalions, 156 field guns, and abundant stores, while the reserves available for foreign service had been raised tenfold from 3,500 to 36,000 men.[12]