Cameron to divert aid millions to avoid more defence cuts and free up cash for equipment Department for International Development's ballooning budget will be used to pay for peacekeeping missions - but not for buying weapons However, the move will free up cash to pay for kit and equipment National Security Council told to make the Dfid pay for troop training in Mali, demobilisation in Afghanistan and help for Syrian rebels Millions of pounds from Britain's overseas aid budget will be diverted to fund the Armed Forces in order to prevent further defence cuts Hundreds of millions of pounds from Britain's overseas aid budget will be diverted to fund the Armed Forces in order to prevent further defence cuts. David Cameron revealed yesterday that the Department for International Development's ballooning budget will be used to pay for peacekeeping missions - but not for buying weapons. However, the move will free up cash to pay for kit and equipment. The Prime Minister has told the National Security Council to draw up plans to make the Dfid pay for troop training in Mali, demobilisation in Afghanistan and help for Syrian rebels. He stepped in after warnings from senior commanders that further defence cuts will imperil elite units such as the SAS and lead to thousands more servicemen being laid off. The move also comes weeks after the Daily Mail called for him to cut the international aid budget by half and give the money to our Armed Forces. Mr Cameron said he was "very open" to "doing more" with the aid budget. He added: "We have to demonstrate that the Dfid budget is used wisely. Dfid is very much part of the National Security Council. Dfid, the Foreign Office and the defence ministry work incredibly closely together. Can they work even more closely together? Can we make sure that the funds we have at our disposal are used to provide basic levels of stability and security in deeply broken and fragile states, then yes we should. Mr Cameron hopes diverting foreign aid money to the Armed Forces will also build public support for the Government's commitment to spend 0.7 per cent of national income on overseas development assistance - a target that will be hit in April this year. The Coalition's decision to increase the Dfid budget by a third to £12billion by the next election has angered taxpayers who have seen public services cut. Aides made clear Mr Cameron has ordered the change to take place in the Government's next spending review, due in May, which will ink in departmental budgets for the year 2015/16. Further cuts of £10billion are expected, with between £500million and £700million trimmed from defence. The Government has guaranteed the equipment budget of the Ministry of Defence will rise by at least 1 per cent until March 2020. But equipment only accounts for around half of the MoD's annual allocation, which is worth £34billion this year. The Prime Minister said a fund called the conflict pool, which is part-funded by the MoD, Dfid and the Foreign Office as a vessel for funnelling cash from Dfid to the MoD, helped fund support for the rebels in Syria and Libya The Prime Minister pointed to a fund called the conflict pool, which is part-funded by the MoD, Dfid and the Foreign Office as a vessel for funnelling cash from Dfid to the MoD. It has helped fund support for the rebels in Syria and Libya. Mr Cameron said: "There's the conflict pool, which we already have. Can we do more? Can we build on this approach? I'm very open to ideas like that. International rules about what constitutes overseas development assistance are drawn up by the Organisation for Economic Cooperation and Development, but it is up to individual nations to interpret the rules as they see fit. While it would not be possible to buy lethal equipment or pay for the salaries of troops from aid money it can be used on other activities in conflict zones. Officials say they could use the foreign aid budget to pay conflict prevention initiatives, the building of infrastructure such as roads and schools in Afghanistan - where the military often shoulder the burden at present- and post-conflict reconciliation. Sources say Mr Cameron personally called for options on how the transfer of cash could take place at a recent National Security Council meeting. That means foreign aid money, rather than MoD cash can be used to pay for the new mission where 200 British forces are to train African soldiers to take on Al Qaeda in Mali and other countries in West Africa. Mr Cameron said: "I think it's obviously true that if you can help deliver security and help provide security and help with the stabilisation that is the base from which all development can proceed." He added: "We have our moral responsibilities for tackling poverty. We also have our national security responsibilities for mending conflict states. We should see Dfid in that context.