Lord Peter Mandelson is facing an investigation into allegations he leaked government information to Jeffrey Epstein while he was a government minister
Lord Peter Mandelson is facing calls to return the payoff he was given after being dismissed as ambassador to the US, a figure which could reach tens of thousands of pounds.
The peer was removed over his ties with paedophile financier Jeffrey Epstein, but fury in Westminster has grown following the latest document release which suggested he passed on information to his friend whilst serving as a government minister.
Supporters of Prime Minister Sir Keir Starmer have said the peer should return the taxpayer-funded payment or give it to a victims’ charity. The Foreign Office confirmed a review had been initiated “in light of further information that has now been revealed”.
READ MORE: J Balvin defends Bad Bunny’s Super Bowl show and tells fans to ‘just vibe’
READ MORE: Andrew’s ex girlfriend claims Epstein ‘is not dead’ and shares Israel theory
The taxpayer-funded payment he was given after his dismissal in September last year could reach as much as £55,000 before tax and deductions, the Sunday Times has reported.
Sir Keir Starmer has found himself battling for his political survival amid scrutiny over his judgement in appointing Lord Mandelson to the position.
Complete details regarding Lord Mandelson’s payoff, following his removal after merely seven months in the Washington post, will be revealed to Parliament after MPs supported a motion for disclosure of documents concerning his time in Government.
However, the Sunday Times has indicated the amount could be between £38,750 and £55,000, based on Lord Mandelson receiving the highest rate within the diplomatic service, an annual wage of between £155,000 and £220,000, and being entitled to a three-month payment. A No 10 source 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.”
Earlier this week Health Secretary Wes Streeting, a potential successor to Sir Keir but someone who was friendly with Lord Mandelson before his downfall, said the peer should “certainly” hand back the money.
A Foreign Office spokesman said: “Peter Mandelson’s civil service employment was terminated in September 2025 in accordance with legal advice and the terms and conditions of his employment.
“As we have consistently said to Parliament, normal civil service HR processes were followed. Further information will be provided to Parliament as part of the Government response to the motion passed last week which is being co-ordinated by Cabinet Office. A review has been instigated in light of further information that has now been revealed and the ongoing police investigation.”
The Metropolitan Police said its investigation into Lord Mandelson, 72, over alleged misconduct in public office would “take some time” after officers finished searching his homes in London and Wiltshire.
“This will be a complex investigation requiring a significant amount of further evidence gathering and analysis,” Metropolitan Police Deputy Assistant Commissioner Hayley Sewart said.
A spokesman for the Deputy Prime Minister said: “The Deputy Prime Minister is focused on the job in hand and fully supports the Prime Minister as he gets on with delivering for the British people.”
Speaking on the BBC’s Today programme, Ex-prime minister Gordon Brown defended Sir Keir as a “man of integrity” who had been “betrayed” by Lord Mandelson.
Mr Brown, who appointed Lord Mandelson as business secretary and elevated him to the House of Lords, said he felt “shocked, sad, angry, betrayed, let down”, upon seeing the messages published by the US Department of Justice which appeared to show the then Cabinet minister sharing sensitive details about the global financial crisis response with Epstein.