TL;DR
The UK government has replaced a Palantir-based system supporting the Homes for Ukraine scheme with an in-house platform, saving millions annually. This move aims to enhance flexibility and sovereignty over the technology.
The UK government has replaced the Palantir-supported IT system used for managing refugee placements under the Homes for Ukraine scheme with an in-house platform, saving millions of pounds annually. The move aims to increase system flexibility and reduce reliance on external suppliers, marking a significant shift in public sector digital strategy.
The original system, built with Palantir’s Foundry platform, was developed rapidly in 2022 to support the UK’s response to the Ukrainian refugee crisis. It facilitated matching refugees with hosts via a website and supported data integration from multiple government sources. Palantir initially provided the system free of charge for six months, but costs later escalated to millions of pounds.
According to a senior digital leader at MHCLG, Coco Chan, the department replaced the Palantir-based system with an in-house solution designed to be more flexible and cost-effective. The new system, operational by September 2025, is already saving the department millions annually in support costs. The transition reflects a broader government initiative to develop ‘sovereign technology’ and reduce dependence on foreign tech firms.
Why It Matters
This development is significant because it demonstrates a shift toward government-built digital infrastructure, aiming for greater control over sensitive data and reduced costs. It also signals a move to challenge reliance on large US technology firms like Palantir, which have been involved in multiple UK public sector projects. The cost savings and increased sovereignty could influence future government technology procurement strategies.
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Background
During the Ukrainian refugee crisis in 2022, the UK government contracted Palantir to develop a system to manage the complex process of matching refugees with hosts. Palantir described its support as critical, enabling the safe resettlement of over 157,000 refugees. The initial free support was part of Palantir’s broader efforts to establish a foothold in UK public services, amid criticism over its practices and reliance on US tech firms.
In 2023, reports emerged questioning the procurement process, with concerns about Palantir’s initial zero-cost offer conflicting with public procurement principles. The NAO (National Audit Office) also highlighted the government’s desire to replace the Palantir system, citing increased costs and reliance issues. The current phase of the project saw the department develop an in-house platform, which was fully operational by September 2025.
“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 the Homes for Ukraine project
“Our support for the Homes for Ukraine scheme was part of a multi-faceted effort to help Ukraine in the face of Russian aggression.”
— Palantir spokesperson
“When given suitable resources the Civil Service can often outperform private companies like Palantir. The development of an in-house system is an important step towards more ‘sovereign technology’.”
— Terence Eden, former government tech advisor
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What Remains Unclear
It is not yet clear how the in-house system compares in performance and security to the Palantir platform over the long term. Details about the specific technology used in the new system remain undisclosed, and the full impact on refugee management efficiency is still being evaluated.
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What’s Next
The government is expected to continue monitoring the new system’s performance and cost savings. Future initiatives may include further in-house development of digital services, with an emphasis on reducing reliance on external providers and enhancing data sovereignty.
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Key Questions
Why did the UK government replace Palantir’s system?
The government aimed to increase flexibility, reduce costs, and gain greater control over refugee data by developing an in-house platform, moving away from reliance on external suppliers like Palantir.
How much money has been saved by replacing the system?
According to MHCLG officials, the in-house system is already saving the department millions of pounds annually in running costs.
Does this mean the UK government is moving away from using external tech firms?
The move indicates a strategic shift towards developing more sovereign digital infrastructure, though external firms may still be involved in other projects.
What are the risks of in-house development?
Potential risks include the need for ongoing technical expertise, maintaining system security, and ensuring performance standards are met without the support of commercial vendors.
