Cabinet Minister Demands Return of Mandelson's Five-Figure Payoff
A senior Cabinet minister has publicly called for Peter Mandelson to return the substantial payoff he received after being dismissed from his diplomatic post. The Labour veteran was removed from his position as the United Kingdom's ambassador to the United States in September 2025, just before significant new documents concerning convicted sex offender Jeffrey Epstein were released by American authorities.
McFadden's Charitable Suggestion for the Funds
Work and Pensions Secretary Pat McFadden, who serves as a key ally to Prime Minister Sir Keir Starmer, stated during a television interview that Mandelson should "give the payoff back or donate it to charity". He specifically suggested organisations that support victims of violence against women and girls might be appropriate recipients. McFadden emphasised that "the public will not think much" of someone accepting such a payment under these controversial circumstances.
Details of the Controversial Payment
Mandelson is believed to have received a termination payment of approximately £40,000, which equates to roughly three months' salary from his former role. The ambassador position typically carried an annual salary between £155,000 and £159,999, making the calculated payout substantial. This financial arrangement has sparked outrage across political lines, with critics labelling it a "golden goodbye" funded by taxpayers.
Deepening Epstein Connections and Allegations
The latest document releases from the US Department of Justice have revealed more extensive connections between Lord Mandelson and Jeffrey Epstein than previously known. These disclosures have led to serious allegations that the former ambassador may have shared market-sensitive government information with the convicted paedophile. The Liberal Democrats have formally requested that the UK's financial watchdog investigate whether these actions could have facilitated insider trading during periods of economic crisis.
Political Fallout for Starmer's Leadership
This developing scandal has intensified political pressure on Prime Minister Sir Keir Starmer and his chief of staff, Morgan McSweeney, who reportedly oversaw Mandelson's original appointment. Despite what McFadden described as a "difficult week" for the government, he maintained his support for Starmer's leadership, noting the Prime Minister has acknowledged making "a bad mistake" in the appointment and will learn from the experience.
Cross-Party Condemnation and Demands
Shadow foreign secretary Dame Priti Patel has characterised the payoff as a "disgusting betrayal of Epstein's victims" and called for full recovery of the funds. The controversy has also fueled speculation about potential leadership challenges within the Labour Party, with reports suggesting former deputy leader Angela Rayner has secured substantial financial backing for such efforts. The government now faces mounting demands to ensure complete restitution of the controversial payment.
