Lord Mandelson Under Scrutiny Over Ambassador Payoff
The Foreign Office has launched a review into a substantial payment made to Lord Peter Mandelson upon his dismissal as ambassador to the United States, with growing calls for him to return the funds or donate them to charity.
Revelations Spark Westminster Fury
Lord Mandelson lost his diplomatic role in September 2025, merely seven months into the position, due to his association with the convicted paedophile financier Jeffrey Epstein. Fresh anger has erupted in political circles following the latest release of Epstein-related documents, which suggest Mandelson leaked sensitive information to Epstein while serving as a government minister.
Allies of Prime Minister Sir Keir Starmer have publicly stated that Mandelson should either repay the taxpayer-funded handout, estimated to be in the tens of thousands, or direct it to a victims' support charity. "Given what we know now, Mandelson should either pay the money back or give it to a charity to support victims," a Downing Street source emphasised.
Financial Details of the Settlement
According to reports from the Sunday Times, the payoff received by Lord Mandelson could amount to as much as £55,000 before tax and deductions. The newspaper indicates the figure may range between £38,750 and £55,000, based on a three-month settlement of the highest annual salary in the diplomatic service, which falls between £155,000 and £220,000.
The Foreign Office previously confirmed it had "reached a settlement in order to terminate Peter Mandelson's civil service employment with immediate effect, in accordance with legal advice and the terms and conditions of his employment." Full details of this financial arrangement are expected to be disclosed in Parliament after MPs supported a motion to release papers related to his government tenure.
Ongoing Police Investigation
Lord Mandelson faces allegations of sharing market-sensitive information with Epstein following the 2008 global financial crisis. The Metropolitan Police are conducting a complex criminal investigation into claims of misconduct in a public office, having completed searches of two of his properties in Camden, north London, and Wiltshire.
A police statement noted the inquiry will require "a significant amount of further evidence gathering and analysis." In a recent development, top corporate and financial crime lawyer Adrian Darbishire KC visited Mandelson's residence near Regent's Park, London, on Saturday afternoon.
Mandelson's Response and Apology
Representatives for Lord Mandelson have been approached for comment on the current situation. He has previously expressed regret over his continued association with Epstein after the financier's 2008 conviction for procuring a child for prostitution and soliciting a prostitute.
"I was wrong to believe Epstein following his conviction and to continue my association with him afterwards," Mandelson stated. "I apologise unequivocally for doing so to the women and girls who suffered."
The Foreign Office spokesman reiterated that normal civil service HR procedures were followed in terminating Mandelson's employment, adding that further information would be provided to Parliament as part of the government's response to the recently passed motion.
