Documents released by the government have revealed that Peter Mandelson requested more than £500,000 in severance pay after being sacked as UK ambassador to the US over his links to convicted sex offender Jeffrey Epstein. The final payout was £75,000, with Chief Secretary to the Treasury Darren Jones describing the initial demand as 'inappropriate and unacceptable'.
The release also shows that Keir Starmer's national security adviser, Jonathan Powell, expressed concerns about Mandelson's appointment to the prime minister's former chief of staff, Morgan McSweeney. Powell said he believed Starmer 'may have had a couple of political conversations' about Mandelson's links to Epstein, and noted that the Foreign Office's most senior civil servant, Philip Barton, also had reservations.
A Cabinet Office due diligence report from December 2024 found a 'general reputational risk' over Mandelson's relationship with Epstein, noting that Mandelson had 'reportedly stayed in Epstein's house while he was in jail in June 2009'. Despite this, Mandelson was offered a highly classified briefing before completing formal vetting.
Darren Jones defended Starmer, saying the due diligence report 'did not expose the depth and extent' of Mandelson's relationship with Epstein. However, the Conservatives claimed the prime minister 'knew all he needed to know' and described the appointment as a 'bad choice'. Shadow Cabinet Office minister Alex Burghart said the documents showed this 'in black and white'.
The documents also reveal that Mandelson suggested using Nigel Farage to 'better UK connections with the Trump administration', calling him a 'bridgehead' to both Trump and Elon Musk. Powell described the appointment process as 'weirdly rushed'. The government expects to release the remaining files in one final batch after checks with the Metropolitan Police and Intelligence and Security Committee.
