A second parliamentary committee has urged Labour to scrap Palantir's £330 million contract with the NHS, intensifying pressure on the next prime minister regarding government deals with the US tech company. MPs on the health and social care select committee want the NHS to terminate ties with Palantir and find a replacement for its system, which is designed to unify and analyse vast amounts of highly sensitive NHS health data.
Cross-party concerns over trust and benefits
The cross-party group of MPs cited 'serious mistrust' among the public and the medical profession of the NHS system, contested evidence of its benefits, and pointed to the availability of other tools that could deliver similar results. Palantir, co-founded by Trump-supporting tech billionaire Peter Thiel, also works for the US, Israeli, and UK militaries.
The MPs backed calls from the science and technology committee last month to exercise a February 2027 break clause in the deal and either develop an in-house replacement to the Federated Data Platform (FDP) or seek a UK alternative.
Health workers and unions oppose contract
Up to 117 NHS data and technology workers broke ranks to call for the deal to be axed, warning that patient privacy protections were inadequate and that a loss of public trust could harm the quality of vital health data. In a letter to Health Secretary James Murray, they stated: 'Data completeness will be compromised by the erosion of patient trust; data privacy protections are inadequate and data structures are at risk of misuse.'
One signatory, a senior data professional who requested anonymity, said: 'The FDP has not shown me any significant technological benefits whatsoever. A frankly mediocre software is being forced on NHS data systems at the expense of patient trust, professional integrity and the fundamental values of the NHS. How can we say we want to use software for saving lives when that same software is also used to kill and ruin lives?'
Palantir's controversial CEO and contracts
Alex Karp, Palantir's chief executive, last year responded to a claim that its technology kills Palestinians by saying: 'mostly terrorists, that's true'. In May, London Mayor Sadiq Khan blocked the Metropolitan Police from awarding a £50 million contract to Palantir, citing 'serious concerns' about how the deal was struck. Palantir is challenging that decision in the High Court.
Layla Moran, Liberal Democrat chair of the health committee, said: 'Little by little, the government's arguments for sticking with the FDP has unravelled. So in the interest of public confidence in the NHS and the security of their medical information, we believe it is time to crack on with preparations to find an alternative.'
Palantir defends its NHS role
Palantir has held the contract with NHS England since 2023. Its AI-powered software supports military strikes in Gaza and Iran, US ICE immigration raids, and access to NHS data, stoking concern. Louis Mosley, Palantir's UK and Europe chief, said critics have 'chosen ideology over patient safety' and insisted the technology has helped cut surgery waiting lists and accelerate cancer diagnoses.
A Palantir spokesperson said: 'Palantir software is helping to deliver better patient care – including 110,000 additional operations to date, a 15% reduction in discharge delays and a 6.8% increase in patients finding out whether they need cancer treatment within 28 days … But that is what it is – software. How that software is used is controlled by the NHS trusts who use it, with data – legally and contractually – only able to be processed strictly in accordance with their instructions.'
Union and government responses
The health workers union Unison said: 'The government cannot allow the NHS to be captured by firms like Palantir which prioritise profits over ethics.' Helga Pile, Unison's head of health, added: 'The health service needs to retain the ownership and control over patient data systems which are highly sensitive and critical infrastructure. Patients, staff and MPs are calling for Palantir's contract to be discontinued. NHS England must listen to them to restore public confidence.'
A Department of Health and Social Care spokesperson said: 'As the secretary of state has already said, the government is reviewing this contract ahead of the February 2027 break clause. Thousands more patients are benefiting from the NHS Federated Data Platform every month, with an extra 110,000 of them having undergone procedures in operating theatres, while also reducing the number of unnecessary days patients stay in hospital following treatment by a seventh.'
