'Millions' of pounds saved by replacing Palantir tech in refugee system

The UK government has saved millions of pounds annually by replacing Palantir’s Foundry platform with an in-house system for the Homes for Ukraine scheme. The initiative, launched in March 2022 to match refugees with UK hosts, initially relied on Palantir’s free six-month support before transitioning to paid contracts worth £4.5m and £5.5m over 12 months. Palantir’s system, built in nine days, helped resettle over 157,000 refugees by integrating visa applications and accommodation offers. However, the Ministry of Housing, Communities and Local Government (MHCLG) later deemed the commercial platform inflexible and costly. A 2023 blog post by MHCLG’s senior digital leader, Coco Chan, confirmed the replacement system now handles data and code internally, cutting support expenses significantly. The shift reflects broader concerns about UK dependence on US tech firms like Palantir, which has faced criticism for its ties to immigration enforcement and military operations. A National Audit Office report highlighted ethical issues with Palantir’s initial zero-cost offer, violating public procurement principles. Chan described the move as a precedent for ‘sovereign technology,’ reducing reliance on external suppliers. Critics argue Palantir’s involvement in controversial sectors makes it an unsuitable partner for public services, including the NHS and Ministry of Defence. Despite its efficiency, the firm’s founders’ associations with US immigration and Israel’s military have fueled debates over ethical procurement. The MHCLG’s decision aligns with calls for greater transparency and control over government digital infrastructure.