Lord Mandelson Confronted with Demands to Repay Dismissal Payoff Following Epstein Scandal
Lord Peter Mandelson is under intense pressure to return a substantial taxpayer-funded payoff he received after being dismissed from his role as ambassador to the United States. The peer was removed from his position in September 2025 due to his connections with the convicted paedophile financier Jeffrey Epstein, but recent revelations have escalated the controversy.
Growing Fury in Westminster Over Alleged Information Leaks
Fury within Westminster has intensified following the release of documents suggesting that Lord Mandelson, while serving as a government minister, passed sensitive information to his friend Jeffrey Epstein. This has prompted supporters of Prime Minister Sir Keir Starmer to demand that the peer either return the payment or donate it to a charity supporting victims.
The Foreign Office has confirmed that a review has been initiated in response to these new disclosures. A spokesman stated, "Peter Mandelson's civil service employment was terminated in September 2025 in accordance with legal advice and the terms and conditions of his employment. A review has been instigated in light of further information that has now been revealed and the ongoing police investigation."
Payoff Figures and Parliamentary Scrutiny
According to reports from the Sunday Times, the payoff could amount to as much as £55,000 before tax and deductions. This estimate is based on Lord Mandelson receiving the highest rate within the diplomatic service, with an annual wage ranging between £155,000 and £220,000, entitling him to a three-month payment upon termination.
Complete details regarding the payoff, which followed his removal after just seven months in the Washington post, are set to be disclosed to Parliament. MPs have supported a motion for the release of documents concerning his time in government, ensuring transparency in this matter.
Political Fallout and High-Profile Reactions
Prime Minister Sir Keir Starmer is facing significant political scrutiny over his judgement in appointing Lord Mandelson to the ambassadorial role. A source from Number 10 told the Press Association, "Given what we know now, Mandelson should either pay the money back or give it to a charity to support victims."
Health Secretary Wes Streeting, considered a potential successor to Sir Keir and previously friendly with Lord Mandelson, has publicly stated that the peer should "certainly" hand back the money. Meanwhile, former Prime Minister Gordon Brown, who appointed Lord Mandelson as business secretary, defended Sir Keir as a "man of integrity" who had been "betrayed" by the peer.
Ongoing Police Investigation into Misconduct Allegations
The Metropolitan Police are conducting a complex investigation into Lord Mandelson, aged 72, over allegations of misconduct in public office. Deputy Assistant Commissioner Hayley Sewart indicated that the probe "will take some time" and requires "a significant amount of further evidence gathering and analysis." Officers have already completed searches of his homes in London and Wiltshire.
The investigation focuses on messages published by the US Department of Justice, which appear to show Lord Mandelson sharing sensitive details about the global financial crisis response with Jeffrey Epstein while serving in Cabinet.
As the situation unfolds, the Deputy Prime Minister's office has emphasized support for the Prime Minister, stating they are "focused on the job in hand." The outcome of this scandal could have lasting implications for political accountability and public trust in government officials.
