TL;DR
The UK Department of Housing replaced a Palantir-built system used for the Homes for Ukraine scheme with an in-house solution, saving millions annually. The change aims to increase control and reduce reliance on external vendors.
The UK Department of Housing, Communities and Local Government (MHCLG) has replaced a Palantir-built IT system used for the Homes for Ukraine scheme with an in-house developed platform, resulting in millions of pounds in savings. This move aims to enhance system flexibility, security, and control, and reduces reliance on external technology providers.
The original system, based on Palantir’s Foundry platform, was initially provided free for six months to support the rapid deployment of the scheme, which matched Ukrainian refugees with UK hosts. Over time, the scheme grew to include more than 157,000 refugees, and the government paid millions for Palantir’s support and infrastructure.
According to senior digital leader Coco Chan, the department replaced the commercial platform with an in-house solution to achieve greater flexibility, control over data and code, and to cut ongoing support costs. The new system has been operational since September 2025, and the department claims it is already saving millions annually in running costs.
Why It Matters
This development marks a shift toward sovereign technology within UK public services, reducing dependency on large US tech firms like Palantir. It signals a broader move to build in-house digital capabilities, which could influence future government procurement and technology strategies. The cost savings and increased control are particularly relevant amid ongoing debates over the role of private tech companies in public sector projects.
Grounded Governance A Practical Guide to Implementing Data Governance That Works
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
Background
The original use of Palantir’s Foundry platform was initiated during a crisis response, with the government accepting a free offer from Palantir to rapidly deploy the refugee matching system. Over time, concerns emerged about reliance on external vendors and the costs involved. The UK government has been increasingly exploring in-house solutions and reducing dependence on foreign technology providers across various sectors, including healthcare, defense, and law enforcement.
“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
“There are clear advantages to building some digital services in-house. But external specialists can bring experience, skills, and the ability to mobilize large teams quickly, which can be critical for urgent national programs.”
— Emma Logan, deputy president of BCS, The Chartered Institute for IT
“Our Homes for Ukraine system was part of a multi-faceted effort to support Ukraine, including military aid, demining, war crimes investigation, and education access.”
— Palantir spokesperson
System Safety Engineering and Management
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
What Remains Unclear
It is not yet clear how the new in-house system compares in performance and security to the previous Palantir platform long-term, or whether other government projects will follow similar paths. Details about the specific technology used in the new system remain undisclosed.
customizable government IT platform
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
What’s Next
The MHCLG is expected to monitor the new system’s performance and cost savings over the coming months. Further government initiatives may focus on expanding in-house digital capabilities and reducing reliance on external vendors, with potential updates or new systems planned for other public services.
U.S.Ai: How America’s AI Sandbox is Transforming Government Work: Inside the Federal AI Revolution Security, Ethics, and the Future of Public Service
As an affiliate, we earn on qualifying purchases.
As an affiliate, we earn on qualifying purchases.
Key Questions
Why did the UK government replace the Palantir system?
The government aimed to increase control over the refugee management system, reduce ongoing support costs, and lessen dependence on external vendors, moving toward sovereign technology.
How much money has been saved by replacing the Palantir system?
The government claims the new in-house platform is already saving millions of pounds annually in support and maintenance costs.
Is the new system as effective as Palantir’s?
It is not yet clear whether the new system matches Palantir’s performance or security standards long-term, as detailed comparisons are not publicly available.
What does this mean for future government IT projects?
This move signals a shift toward building more digital infrastructure in-house, potentially reducing reliance on large foreign tech firms and influencing future procurement strategies.
