A cabinet minister has called on Peter Mandelson to repay the payout he received after resigning as ambassador to the United States, as the Foreign Office reviews the payment. The Labour peer is reported to have received around £55,000, equivalent to three months' salary, when he quit in September following revelations about his relationship with convicted child sex offender Jeffrey Epstein.
Welfare Secretary Pat McFadden, a former ministerial ally of Mandelson, told the BBC that Mandelson should “reflect on that and either return it or give it to an appropriate charity.” The Foreign Office confirmed that Mandelson’s employment was terminated in line with legal advice and his contract terms, but officials are reviewing the payment, believing they had no legal choice at the time.
McFadden expressed dismay at leaked emails showing Mandelson passing sensitive government information to Epstein, saying he knew nothing of that side of his former boss. He defended Prime Minister Keir Starmer against calls to resign, arguing that frequent leadership changes harm the economy and international reputation.
However, pressure on Starmer is mounting. Steve Wright, head of the Fire Brigades Union, became the first Labour-affiliated union leader to urge the prime minister to step down, citing a lack of change. Many Labour MPs are also agitating for Starmer to sack his chief of staff, Morgan McSweeney, who personally pushed for Mandelson’s appointment. Tooting MP Rosena Allin-Khan criticised a “boys’ club” in Downing Street, while another MP warned that allowing McSweeney to resign would weaken the prime minister further.
