More than 3.5 million patients in England have now opted out of NHS data sharing, officials and campaigners say, as ministers are reported to be preparing to extend Palantir's £330 million ($442.3 million) Federated Data Platform (FDP) contract while seeking a British replacement.

The Financial Times and the Guardian reported last week that the government intends to prolong the US firm's deal by two years rather than trigger a break clause in February 2027. No final decision has been announced and ministers are expected to decide by December.

The FT said a government review had concluded that using the break clause would be too disruptive for NHS data systems. Instead, ministers would begin a procurement process for a British alternative, with Palantir potentially replaced in two years. Health Secretary Yvette Cooper has faced calls to cancel the contract.

What the National Data Opt-Out Covers

The national data opt-out allows patients to stop their confidential information being used for research and planning. It does not affect direct care.

Ministers and NHS England say it does not apply to the FDP because the platform is used to support care delivery, meaning patients cannot opt out of the platform specifically, although individual trusts can decide not to use it.

Health innovation minister James Frith told the Commons Health and Social Care Committee in a letter that about 60,000 more people opted out between mid‑May and mid‑July.

He said he was concerned about mistrust of Palantir and its impact on people's willingness to share data, and attributed the rise to increased media attention. He described the increase as modest.

The National Data Guardian, Dr Nicola Byrne, advised Mr Frith in a letter dated 9 October that public and professional trust should carry 'substantial weight' when any supplier of health and care data systems is assessed.

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NHS Contract Under Growing Scrutiny

NHS England awarded the FDP contract in November 2023 to a consortium led by Palantir Technologies UK. The award notice valued it at £182.2 million ($244.2 million), though NHS England says the total could reach £330m over seven years.

The initial three‑year term ends in early 2027, with options to extend by two years, then one year, then a further year. NHS England says 137 trusts were reporting benefits by the end of May.

Foxglove, the tech justice group, said the reported claim that replacing Palantir within four months would be impractical was 'frankly, nonsense.' It argues the contract requires the company to provide up to 24 months of bridging support if it ends early.

Amnesty International UK's Tom Guha said ministers should 'show Palantir the door now' rather than give it two more years to bed in. Two Commons select committees have recommended against extension.

Critics have highlighted Palantir's work with the Trump administration and the Israeli military, and past criticism of the NHS by co‑founder Peter Thiel. Louis Mosley, Palantir's UK and Europe chief executive, has said ending the contract would be 'putting politics above patients.'

NHS England has commissioned Imperial College London to carry out a three‑year independent evaluation of the platform, with findings due in 2029. The evaluation will report well after the February 2027 break point, when ministers must decide whether to stick with Palantir or test public trust with yet another shift in control of NHS data.

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