UK saves 'millions' of pounds by ditching Palantir for refugee system

The UK's Ministry of Housing, Communities and Local Government (MHCLG) has replaced a Palantir-built IT system used to manage the Homes for Ukraine refugee scheme with an in-house alternative, saving millions of pounds annually. Palantir initially provided the system for free for six months before subsequent contracts worth £4.5m and £5.5m were awarded. The government's chief commercial officer had raised concerns about Palantir's practice of offering zero-cost pilots to gain commercial footholds. The new in-house system, operational since September 2025, is described as more flexible, cheaper, and gives the government control over its own data and code. The move is seen as a step toward 'sovereign technology' and reducing UK dependence on large US tech suppliers, though experts note external specialists still offer value for urgent national programmes.