TL;DR
The UK government has transitioned from using Palantir’s Foundry platform to an in-house developed refugee system. This move aims to reduce costs and increase control over data. The new system is operational as of September 2025.
The UK government has replaced the Palantir-built ‘Homes for Ukraine’ refugee matching system with an internally developed platform, aiming to cut costs and enhance control over data, according to official sources.
The Department of Housing, Communities and Local Government (MHCLG) announced that its new in-house system became operational by September 2025, replacing the previous Palantir-based platform. The switch was driven by the desire to reduce reliance on external suppliers and to achieve cost savings, with officials stating that the new system already saves millions of pounds annually.
The original system, built on Palantir’s Foundry platform, was initially provided free of charge for six months to support the rapid deployment of the Homes for Ukraine scheme, which matched refugees with host offers. Over time, the government sought a more flexible, secure, and cost-effective solution, leading to the development of an internal platform. The department’s senior digital leader, Coco Chan, confirmed that the new system offers improved control over data and code and is more adaptable to future needs.
Why It Matters
This development marks a significant shift towards ‘sovereign technology’ in UK public services, reducing dependence on large US technology firms like Palantir. It signals the government’s intent to build more in-house digital capabilities, potentially influencing future procurement and technology strategies across other departments.
Critics and industry experts see this as a positive move towards transparency, cost efficiency, and security, especially amid ongoing concerns about reliance on foreign tech providers. However, some caution that external expertise can be valuable for complex projects and urgent needs.
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Background
In 2022, the UK government initially partnered with Palantir to develop a system for managing the Homes for Ukraine scheme, which aimed to match refugees with host families amid the Russian invasion of Ukraine. Palantir’s platform was chosen for rapid deployment, with the firm supporting the project for free initially. Over time, government officials expressed a desire to develop an internal solution to better control data and reduce costs, leading to the current transition.
This move aligns with broader government efforts to develop ‘sovereign’ digital infrastructure, reducing reliance on foreign tech giants, especially in sensitive areas such as refugee management and national security.
“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 software supported the safe resettlement of more than 157,000 refugees and was part of a multi-faceted effort to help Ukraine.”
— Palantir spokesperson
“When given suitable resources, the Civil Service can often outperform private companies like Palantir.”
— Terence Eden, former government tech advisor
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What Remains Unclear
Details about the specific technology platform now used by the UK government remain undisclosed. It is also unclear how the transition impacted the scheme’s overall efficiency, speed, or refugee experience. The long-term performance and security of the new system are still to be evaluated as it continues to be used.
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What’s Next
The government is expected to monitor the performance of the new platform closely, with potential adjustments based on operational feedback. Additional digital services may follow this model, emphasizing internal development over reliance on external suppliers. Further transparency on the system’s capabilities and security measures may be forthcoming in the coming months.
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Key Questions
Why did the UK government replace Palantir’s refugee system?
The government aimed to reduce costs, increase control over data, and develop a more flexible, sovereign digital infrastructure.
How much money has been saved by replacing the Palantir system?
Officials state that the new in-house system is already saving millions of pounds annually in support costs.
What are the benefits of building an in-house system?
In-house systems can offer better control over data and code, increased flexibility, and potentially lower long-term costs.
Does this mean Palantir’s technology was ineffective?
Palantir supported the initial rapid deployment of the scheme, but the government sought a more tailored, cost-effective solution for the long term.
Will the government rely less on external tech firms in the future?
The government appears to be moving toward greater internal development, but external expertise may still be used for complex or urgent projects.
