TL;DR
The UK government has transitioned from using Palantir’s Foundry platform for managing Ukrainian refugee placements to an in-house developed system. This move aims to reduce costs and increase data sovereignty, marking a shift towards more independent digital infrastructure.
The UK government has officially replaced Palantir’s refugee management software with an in-house developed system, aiming to cut costs and enhance data control. This change marks a significant shift in the department’s digital strategy and reduces reliance on external suppliers.
Initially, the government contracted Palantir to develop a system based on its Foundry platform to support the Homes for Ukraine scheme, which helped place thousands of refugees. Palantir’s solution was provided free for six months, after which costs grew to millions as the scheme expanded. The government later decided to develop its own platform, citing the need for greater flexibility, security, and cost savings.
According to a senior digital leader at MHCLG, Coco Chan, the new system was built in-house and became operational by September 2025. Chan stated that this move is already saving the department millions of pounds annually in support costs. The department emphasized that the new platform offers improved control over data and code, and is more adaptable to future needs.
Why It Matters
This development is significant because it reflects a broader government push towards ‘sovereign technology,’ reducing dependence on foreign tech firms like Palantir. It also highlights a strategic shift to build more cost-effective, secure, and flexible digital systems internally, which could influence future government procurement and digital infrastructure policies.
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Background
The UK government initially engaged Palantir during the early stages of the Ukraine refugee scheme, benefiting from the firm’s rapid deployment capabilities. Palantir’s Foundry platform was used to manage tens of thousands of visa applications and accommodation offers. However, concerns about reliance on US-based tech firms and issues related to public procurement practices prompted a move towards internal development. Critics have argued that reliance on large US tech companies poses risks to data sovereignty and cost control.
“Longer term, we wanted to replace the platform with a more flexible technology solution, enabling [MHCLG] to save significant support costs, control the system data and code.”
— Coco Chan, senior digital leader of Homes for Ukraine
“When given suitable resources the Civil Service can often outperform private companies like Palantir.”
— Terence Eden, former government technology advisor
“Our software supported the safe resettlement of more than 157,000 refugees and was part of a multi-faceted effort to help Ukraine.”
— Palantir spokesperson
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What Remains Unclear
It is not yet clear whether the government will develop similar in-house solutions for other data-intensive projects or continue to rely on external providers. The full scope of cost savings and operational impacts of the new system are still being evaluated.
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What’s Next
The government is expected to monitor the performance of the new platform and assess its effectiveness in future refugee and public service programs. Further updates on the system’s capabilities and potential expansion are anticipated in upcoming government reports.
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Key Questions
Why did the UK government replace Palantir’s refugee system?
The government aimed to reduce costs, increase data sovereignty, and gain greater control over the system by developing an in-house solution.
How much money has the government saved by replacing Palantir’s system?
Officials estimate the new system is already saving millions of pounds annually in support and operational costs.
Will the government continue to use Palantir’s technology elsewhere?
It is not yet clear; the government has emphasized the move as part of a broader strategy towards sovereign, in-house digital systems but has not announced a complete withdrawal from Palantir’s services across all projects.
What are the potential risks of building in-house systems?
Risks include the need for significant expertise and resources, potential delays, and challenges in scaling or maintaining complex systems without external support.
