Millions saved by replacing Palantir tech in refugee system

The UK government has saved millions of pounds by replacing a Palantir IT system used to find homes for Ukrainian refugees with a new system built by its own experts. The Homes for Ukraine scheme, launched in March 2022, matched people fleeing the conflict with offers of accommodation, a complex task that Palantir initially supported for free but later grew to cost millions. The Ministry of Housing, Communities and Local Government (MHCLG) said its new system was "more flexible" and could meet "high standards" of security.

The original system, built on Palantir's Foundry platform, was initially provided for free for six months but later led to 12-month contracts worth £4.5m and £5.5m. Palantir said it was proud to have supported the scheme and "stood up a solution in just nine days, which enabled the safe resettlement of more than 157,000 refugees". However, the government's chief commercial officer raised concerns about Palantir's practice of offering a zero- or nominal-cost initial offer to gain a commercial foothold, which was contrary to public procurement principles.

The MHCLG's new system, created in-house, has already saved millions of pounds a year in running costs. Coco Chan, a senior digital leader of the Homes for Ukraine project, said the department had set a precedent by moving a complex live system to an in-house setup, reducing reliance on external suppliers. The move has been welcomed by those who have criticized Palantir's involvement in UK public services, including its contracts with the NHS, the Ministry of Defence, and 11 police forces.

Terence Eden, a former government technology advisor, said the development of an in-house alternative to Palantir's tech was an important step towards more "sovereign technology".