The UK government's financial plans for Palantir's Federated Data Platform (FDP) in the NHS show a planned budget of £485 million over four years, spanning from the 2023/24 to 2026/27 financial years. This figure comprises £340 million in revenue spending and £145 million in capital expenditure. The initial year, 2023/24, had a budget of £122.3 million, consisting of £85.4 million in revenue and £36.9 million in capital.
Despite these costs, NHS England anticipates significant returns from the FDP. A project assessment suggests the platform will generate approximately £780 million in benefits over a seven-year appraisal period, leading to a benefit-cost ratio of 4.92. This implies that for every £1 spent, nearly £5 will be returned, with £3.92 representing pure financial upside. This includes an estimated £60 million per year in direct financial return by the end of the decade, £55 million annually in non-cashable benefits, and £38 million in wider societal benefits.
The overall estimated cost of the FDP program, including expenses outside the public sector, is projected to be £1.04 billion over its entire lifespan. The contract award specifies an investment of up to £330 million over seven years, with at least £25.6 million allocated for the first contract year. Palantir Technologies UK leads the consortium delivering the FDP, with support from Accenture, PwC, NECS, and Carnall Farrar. The platform aims to connect data sets across the health service, and over 170 organizations have already committed to using it.
