The grasping peer wanted the Government to “pay out the remainder of the four-year salary costs of the fixed term appointment”, a Treasury form reveals
Shamed Peter Mandelson demanded a massive severance payment of almost £550,000 after being sacked as US ambassador, emails show.
The grasping peer wanted the Government to “pay out the remainder of the four-year salary costs of the fixed term appointment”, a Treasury form reveals.
But he was instead awarded a £75,000 taxpayer-funded payout, less than 15% of what he had requested, which civil servants felt was a ‘win’ against the Prince of Darkness for voters.
Mandelson made the request after being given the boot from the top job in September amid the growing scandal over his links to paedophile financier Jeffrey Epstein.
The findings come in the first tranche of official documents published by the Government relating to Mandelson’s controversial appointment to the Washington role.
They show national security adviser (NSA) Jonathan Powell believed the process for giving Lord Mandelson the job was “weirdly rushed”.
Prime Minister Sir Keir Starmer was also warned by officials of the potential risk to him personally if the appointment backfired.
He is now under fire from all sides over the appointment.
The documents show Starmer was told there was a “general reputational risk” over Lord Mandelson’s relationship with Epstein.
This came in a “due diligence” document drawn up in December 2024 before Lord Mandelson’s appointment, which noted a series of reports detailing his links with Epstein.
And the files reveal that the PM was advised that he would be personally exposed “if anything goes wrong” with Lord Mandelson’s appointment.
An official “box note” from Lord Case, the Cabinet Secretary, explained the difference between appointing a civil servant as US ambassador and a political appointment.
The note added: “The individual concerned will need to operate as an ambassador for the first time while also navigating a new US administration.
“If anything goes wrong, you could be more exposed as the individual is more connected to you personally.”
Shadow chancellor of the Duchy of Lancaster Alex Burghart said: “These documents just confirm what we already knew.
“Keir Starmer was plainly aware of the relationship between Mandelson and the world’s most notorious paedophile when he appointed him as US ambassador.
“What’s worse, the Government gave him a payoff of £75,000 despite his resignation in disgrace.
“No one will be able to trust the Prime Minister’s judgment again.”
Sir Keir has insisted Lord Mandelson “lied repeatedly” to No 10 about his relationship with Epstein, before and during his tenure as ambassador.
Lord Mandelson was arrested on February 23 on suspicion of misconduct in public office.
He was subsequently bailed, but later released from his bail conditions, although he remains under investigation.
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