Under the 1868 Liberal government, the Secretary of State for War was Edward Cardwell. The reforms had been on the cards for a long time, the aim being to centralise the power of the war office, abolish the purchase of officers' commissions, create reserve forces stationed in Britain and establish short terms of service for enlisted men. The Cardwell reforms were an essential stage in full modernisation of the army.
By far the most controversial element of the reforms was stopping the commission purchase system. The system of purchasing a commission was replaced by a system of advancement by seniority and merit. It unblocked the avenues of promotion to deserving officers regardless of their personal means.
Aa part of the reforms,Cardwell introduced the Army Enlistment Act 1870, which reduced the period of enlisted service from twenty-one years to twelve years. The first years were on active service with men then passing into the Army Reserve for the remainder of their serving time. They were liable for recall to active service during the residual period if the need arose. The minimum length of active service was six years for infantry, eight years for line cavalry and artillery, twelve years for the Household Cavalry and three years for the Army Service Corps. In 1881 active short service for the infantry was increased to seven years.
The minimum period of regular service varied from as little as four years in the infantry, to as much as eight in the cavalry and artillery. The maximum length of service remained at twenty-one years but only soldiers who became warrant officers or senior non-commissioned officers generally served the full term.
In 1872 Cardwell gave every cavalry and infantry regiment and artillery brigade a fixed depot and recruiting area. Recruits who expressed a preference were allowed to join a regiment of their choice if there were vacancies. Infantry regiments were reorganised on a county-based system. One battalion would serve overseas while the other was stationed in Britain and after a few years would swap over.
Other administrative reforms were also introduced including the abolition of the Ordnance Board and Commissariat which were absorbed into the war office. The administration of the militia and reserves also came under the control of the war office. The Commissariat, and the Military Train became the Control Department, which consisted of officers and the Army Service Corps in other ranks in 1869. Later refinements were also made in these departments.
Discipline and punishments were also reformed. Legislation resulted in general orders being issued throughout the army which ended the brutal disciplinary measures such as flogging and branding.
Cardwell greatly improved soldiers' conditions by making the ration allowance of bread, potatoes and meat free and he also reduced other stoppages particularly for medical care. He introduced a system of extra pay for soldiers who earned good-conduct badges after several years of service.