TL;DR
The UK government has replaced its Palantir software for managing Ukrainian refugees with an internally developed system. The switch aims to cut costs and enhance data control. The new system is operational as of September 2025.
The UK government has replaced its Palantir-based refugee management system with an in-house developed platform, resulting in significant cost savings and greater data control, according to officials.
The Ministry of Housing, Communities and Local Government (MHCLG) announced that it has transitioned from using Palantir’s Foundry platform, initially supported for free during the Ukraine refugee scheme, to a custom-built system managed internally. The new platform, operational since September 2025, is reported to be more flexible and secure, and has already saved the department millions of pounds annually in support costs.
The original Palantir system was deployed rapidly in 2022 to support the Homes for Ukraine scheme, which matched refugees with host offers. Palantir claimed it supported over 157,000 refugees and highlighted its quick deployment in just nine days. However, government officials expressed concerns about reliance on external suppliers and the cost of maintaining the system, prompting a decision to develop an alternative in-house.
Senior digital leader Coco Chan stated that the new system was designed to meet higher standards of security and data sovereignty, reducing dependence on external vendors. The department emphasized that the transition aligns with broader efforts to develop ‘sovereign technology’ and improve digital resilience in public services.
Why It Matters
This development signals a shift towards greater technological independence for the UK government, reducing reliance on foreign tech firms like Palantir. It also highlights ongoing debates about the costs and benefits of outsourcing critical digital infrastructure versus building in-house capabilities. The move could influence future public sector digital projects and procurement strategies, especially amid concerns over data security and national sovereignty.
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Background
During the early stages of the Ukraine refugee crisis in 2022, the UK government implemented a system supported by Palantir to manage refugee placements swiftly. Palantir’s Foundry platform was offered initially for free but was later recognized as costly to maintain. Reports indicated that the government sought to replace the system due to concerns about cost, data control, and reliance on external suppliers. The current phase of the Russian invasion of Ukraine continues to cause instability, underscoring the importance of effective refugee management systems.
Previous controversies around Palantir’s contracts with UK public agencies, including the NHS and police forces, have fueled criticism regarding dependency on US tech giants. The MHCLG’s move to develop an in-house solution reflects a broader governmental push for digital sovereignty and cost efficiency.
“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
“The new platform is more flexible, secure, and cost-effective, and has been operational since September 2025.”
— MHCLG spokesperson
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What Remains Unclear
It is not yet clear how the new system’s performance compares long-term with the previous Palantir setup, or whether similar approaches will be adopted for other government digital projects. Details about the specific technology used in the in-house platform remain undisclosed.
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What’s Next
The government is likely to monitor the new system’s effectiveness over the coming months, with potential adjustments based on operational feedback. Future initiatives may focus on expanding in-house development to other digital services, aiming for further cost savings and sovereignty.
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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 software, and decrease reliance on external suppliers by developing an in-house platform.
How much money has been saved by switching to the new system?
Officials estimate that the new system is already saving the Ministry of Housing millions of pounds annually in support and maintenance costs.
Does this mean the UK is moving away from using US tech companies?
Yes, this move reflects a broader effort to develop ‘sovereign technology’ and lessen dependence on foreign providers for critical digital infrastructure.
Will the new system impact refugee support services?
Officials state the new platform is more flexible and secure, which should enhance the efficiency and safety of refugee management, though long-term impacts are still being assessed.
