The Foreign Office has announced it will conduct a formal review into the substantial payoff reportedly awarded to Peter Mandelson following his dismissal as ambassador to the United States. This development comes as political pressure intensifies for the peer to return the taxpayer-funded sum, which has sparked controversy over government appointments and financial accountability.
Details of the Controversial Payoff
According to reports from the Sunday Times, Mandelson received a termination payment that could amount to as much as £55,000 before tax deductions. This figure is believed to represent approximately three months of salary from his diplomatic position. Although the exact salary for the US ambassador role has not been officially disclosed by the government, such positions typically command between £155,000 and £220,000 annually, placing them at the premium end of diplomatic service remuneration.
Political Repercussions and Demands for Transparency
The revelation of this payoff has placed Prime Minister Keir Starmer under significant political scrutiny, with questions emerging about his judgment in originally appointing Mandelson to the prestigious diplomatic post. Mandelson's association with the late convicted sex offender Jeffrey Epstein, which led to his dismissal in September, has compounded the controversy surrounding this financial arrangement.
Allies of the Prime Minister have publicly called for Mandelson to either return the substantial sum to the public purse or donate it to a charity supporting victims of abuse. These demands reflect growing concerns about appropriate use of taxpayer funds and ethical standards within government appointments.
Foreign Office Response and Parliamentary Oversight
A spokesperson for the Foreign Office confirmed that a review has been initiated in response to new information that has come to light regarding the termination payment. The spokesperson stated: "Peter Mandelson's civil service employment was terminated in accordance with legal advice and the terms and conditions of his employment. Normal civil service HR processes were followed."
The office further clarified that additional information will be provided to Parliament as part of the government's response to a motion passed last week, which called for greater transparency regarding Mandelson's tenure. This parliamentary motion, coordinated through the Cabinet Office, received backing from MPs who demanded full disclosure of documents related to Mandelson's government service.
Unverified Claims and Ongoing Developments
Sources cited by the Sunday Times have suggested that Mandelson initially requested a significantly larger termination payment than he ultimately received. However, these claims remain unverified through independent channels at this stage. The complete details regarding the precise amount and circumstances of the payoff are expected to be revealed to Parliament in the coming weeks as the government prepares its formal response to the transparency motion.
This situation continues to develop as political observers monitor both the Foreign Office review and the potential impact on Prime Minister Starmer's leadership. The episode highlights ongoing debates about accountability, transparency, and ethical standards within Britain's diplomatic corps and government appointments more broadly.
