Starmer knew Mandelson stayed at Epstein residence whereas in jail however nonetheless employed him

PM Keir Starmer knew that Peter Mandelson had stayed at Jeffrey Epstein’s home while he was in jail in 2009 but still appointed him anyway, government files have confirmed.

Documents released by the UK Government this afternoon, including a due diligence report, reveal that Mr Starmer was presented with evidence that former US ambassador Mandelson had close ties with paedophile Epstein and convicted sex offender Ghislaine Maxwell – including that Mandelson had reportedly stayed at the late financier’s home while he was in jail in June 2009, following his first conviction of procuring an underage girl in 2008. 

The due diligence document drawn up in December 2024 before Lord Mandelson’s appointment to the Washington role noted a series of reports detailing his links with Epstein. The files note Mandelson and Epstein’s relationship continued across 2009-2011, beginning when Mandelson was business minister and continuing after the end of the Labour government. 

The files state that in 2014, Mandelson also agreed to be a founding citizen of an ocean conservation group founded by Ghislaine Maxwell – information Mr Starmer would also have been confronted with before Mandelson’s appointment as ambassador in 2025.

Lord Mandelson also asked for more than £500,000 as a severance payment when he was sacked in September last year – and received £75,000 instead. he newly released files show Mandelson requested the government “pay out the remainder of the 4-year salary costs of the fixed term appointment”. The document states: “This would have amounted to £547,201.”

Instead, Mandelson received £40,330 pay in lieu of notice to cover the three months notice period in his contract, plus an additional £34,670 severance payment.

At the top of the document, it stated that a decision was needed “as soon as possible” as Mandelson “remains on FCDO [Foreign Office and Commonwealth] payroll, therefore swift agreement to the special severance package will allow the organisation to conclude the appointment without further delay or cost”.

The document is dated September 30, 2025, almost three weeks after he was fired by Sir Keir Starmer.

This is a breaking news story and is being constantly updated. Please refresh the page regularly with the latest news, pictures and videos.

You can also get email updates on the day’s biggest stories straight to your inbox by signing up for our newsletters.

Get all the very best headlines, pictures, opinion and video on the stories that matter to you by following Daily Star every time you see our name.

Follow Daily Star on Android – CLICK HERE

Follow Daily Star on Apple – CLICK HERE

Follow Daily Star on Snapchat – CLICK HERE

You can also sign up for Twitter alerts for breaking news by following @starbreaksnews and follow us @dailystar for all the latest updates.

Keep up-to-date with your must-see news, features, videos and pictures throughout the day by following us on Facebook at facebook.com/thedailystar.