MPs urge Labour to ditch £330m Palantir software contract with NHS

Cross-party group backs call from science and technology committee to look at alternative options, citing ‘serious mistrust’

A second parliamentary committee has urged Labour to scrap Palantir’s £330m contract with the NHS, increasing pressure on the next prime minister over government deals with the US tech company.

MPs on the health and social care select committee want the NHS to cut ties with Palantir and find a replacement for its system, which is supposed to unify and analyse huge amounts of often highly sensitive NHS health data.

Palantir, cofounded by the Trump-supporting tech billionaire Peter Thiel , also works for the US, Israeli and UK militaries, and the cross-party group of MPs cited “serious mistrust” among the public and the medical profession of its NHS system, contested evidence of its benefits, and cited the availability of other tools that could deliver similar results.

Last month the science and technology committee called for the government to exercise a February 2027 break clause in the deal and either develop an in-house replacement to the federated data platform (FDP) or look for a UK alternative.

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 the health secretary , James Murray, they said: “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?”

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, Sadiq Khan, the London mayor, blocked the Metropolitan police from awarding a £50m contract to Palantir after saying Londoners wanted to see public money being paid to companies that “share the values of our city”. City Hall cited “serious concerns” about how the deal had been struck. Palantir is challenging the decision in the high court.

Layla Moran, the 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 has held the contract with NHS England since 2023. But the use of its AI-powered software to support military strikes in Gaza and Iran, US ICE immigration raids and access to NHS data has stoked concern. Palantir’s UK and Europe chief, Louis Mosley , has said critics of its NHS role have “chosen ideology over patient safety” and insisted the technology has helped cut surgery waiting lists and accelerate cancer diagnoses.

A spokesperson for Palantir 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.”

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, the union’s head of health, said: “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 spokesperson for the Department of Health and Social Care 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.”