UK Saves Millions Building Refugee System In-House

When Russia invaded Ukraine in March 2022, Britain needed a system to match refugees with willing hosts in just days, not months.

Tech giant Palantir offered to build it for free. Within nine days, they created a platform that ultimately helped resettle over 157,000 Ukrainian refugees through the Homes for Ukraine scheme. The system combined data from thousands of visa applications and hundreds of thousands of accommodation offers.

But free doesn't stay free forever. After the initial six months, Palantir's contracts ballooned to £4.5 million, then £5.5 million for the following years. The Government's chief commercial officer raised concerns about companies offering free pilots to gain a commercial foothold, avoiding fair competition rules.

The Ministry of Housing, Communities and Local Government decided to take control. Their in-house team built a replacement system that went live in September 2024, and it's already saving millions in annual running costs.

The Bright Side

This success story challenges a common assumption that only big tech companies can handle complex government systems. Coco Chan, a senior digital leader on the project, said the new platform is more flexible, letting the department control its own data and code instead of depending on external suppliers.

The move represents an important step toward what experts call "sovereign technology." Former government technology advisor Terence Eden told the BBC that civil servants, when properly resourced, can often outperform private contractors like Palantir. The MHCLG system is better, easier to use, and cheaper to run.

Some worry the UK relies too heavily on large American tech suppliers, especially for sensitive public services. Palantir currently holds contracts with the NHS, Ministry of Defence, and 11 police forces across Britain.

Emma Logan from BCS, The Chartered Institute for IT, acknowledges that external specialists bring valuable experience and can mobilize quickly for urgent programs. But she agrees there are clear advantages to building certain digital services in-house.

Palantir defended its work, noting the system change proves clients aren't locked into using their technology. The company emphasized its broader support for Ukraine includes military assistance, demining efforts, war crimes investigations, and helping pupils access safe schools.

The message is clear: emergency situations sometimes require quick outside help, but governments can regain control and save taxpayers money by investing in their own digital capabilities.