Full Breakdown
In-House Replacement of Palantir’s System for the Homes for Ukraine Scheme
5/15/2026, 11:56:26 AM
Background & Context
The Homes for Ukraine programme was launched in March 2022, weeks after Russia’s full-scale invasion, to match private accommodation offers with Ukrainian refugees. To deliver the service quickly, the then-Conservative government accepted a six-month free pilot from Palantir Technologies built on its Foundry platform. Subsequent 12-month contracts were awarded—£4.5 million and £5.5 million—according to a National Audit Office (NAO) report. The NAO flagged concerns that offering a zero-cost pilot to gain a commercial foothold may breach public-procurement rules that require open competition.
Core Development: Transition to an In-House Platform
The Ministry of Housing, Communities and Local Government (MHCLG) decided to replace Palantir’s solution with a system developed by its own digital experts. The department described the new platform as “more flexible” and capable of meeting “high standards” of security. The in-house replacement became operational in September 2025 and, according to senior digital leader Coco Chan, is already saving MHCLG “millions of pounds a year in running costs.”
Data & Statistics
Official Statements & Responses
- MHCLG: The new system offers greater flexibility, higher security, and a long-term reduction in support costs.
- Palantir: Proud of standing up a solution in nine days that enabled safe resettlement of more than 157,000 refugees and asserted that the change “shows there is no risk of firms being locked into using its own.”
- MHCLG: Confirmed the replacement platform was fully operational by September 2025.
Criticism & Opposition
Critics have highlighted Palantir’s contracts across UK public services and its links to U.S. immigration enforcement and Israeli military operations, arguing the firm is an unsuitable partner. Former government technology adviser Terence Eden called the in-house development an important step toward “sovereign technology,” noting that the civil service can often outperform private firms when properly resourced. Emma Logan, deputy president of the Chartered Institute for IT (BCS), acknowledged the benefits of internal development but warned that external specialists can deliver speed and specialist expertise for urgent national programmes. Rob Miller of Public Digital argued that reducing reliance on big tech requires rapid investment in internal capability.
Verbatim Quotes
- “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, Homes for Ukraine project
- “When given suitable resources the Civil Service can often outperform private companies like Palantir,” — Terence Eden, former government technology advisor
- “external specialists can bring experience, specialist skills, and the ability to put large teams in place quickly, which can be particularly important for urgent national programmes” — Emma Logan, deputy president, BCS
- “The firm also said the change to a new system showed there was no risk of firms being locked into using its own.” — Palantir spokesperson
- “already saving MHCLG millions of pounds a year in running costs” — Coco Chan, senior digital leader, Homes for Ukraine project
Why It Matters
The switch illustrates a move toward digital sovereignty and stricter adherence to public-procurement principles, setting a precedent for future government digital projects and potentially curbing dependence on large foreign technology vendors.
What’s Next
MHCLG will continue to monitor cost savings and system performance after September 2025, while parliamentary and audit scrutiny of procurement practices may shape upcoming contracts with technology providers.
