The UK's Federated Data Platform (FDP) for the National Health Service (NHS), which utilizes technology from Palantir, is now projected to cost more than £1 billion over its lifespan. This figure represents a substantial increase from earlier estimates. However, a recent assessment indicates that for every £1 spent on the FDP, almost £5 will be returned, suggesting a benefit-cost ratio of 4.92. This includes £3.92 of pure financial upside.
The initial contract awarded to Palantir in December for a seven-year period was valued at £330 million, with a maximum potential value of up to £480 million including extensions. Documents from NHS England's FDP Programme Board had previously shown a planned rolling budget of £485 million over four years, encompassing £340 million in revenue spending and £145 million in capital for the financial years 2023/24 to 2026/27.
Despite the projected financial returns, the FDP faces significant opposition. MPs on the Health and Social Care Committee have called for the government to terminate its contract with Palantir due to public mistrust and concerns about the efficacy of the platform. They highlighted doubts about whether reported benefits are directly attributable to the FDP and questioned the necessity of Palantir's involvement, citing a break clause in the contract in February 2027.
