Foreign Office Initiates Review into Mandelson's Controversial Payoff
The Foreign Office has launched a formal review into the reported five-figure taxpayer-funded payoff given to Peter Mandelson following his dismissal as ambassador to the United States. This development comes amid escalating political pressure and public scrutiny over the substantial exit payment.
Details of the Payoff and Diplomatic Salary
According to a Sunday Times report, Mandelson received a payoff potentially as high as £55,000 before tax and deductions after being sacked in September. This exit payment is equivalent to approximately three months' salary from his diplomatic role. Although the exact salary for the US ambassador position has not been publicly disclosed by the government, it typically ranks at the highest end of the diplomatic service, with annual earnings estimated between £155,000 and £220,000.
Political Fallout and Calls for Repayment
The controversy has intensified political challenges for Prime Minister Keir Starmer, who faces mounting questions over his judgment in appointing Mandelson to the prestigious US ambassador role. Allies of Starmer have publicly urged Mandelson to return the taxpayer-funded handout or donate it to a victims' charity, highlighting the ethical concerns surrounding the payment.
Mandelson's dismissal stemmed from his friendship with the late convicted child sex offender Jeffrey Epstein, which raised significant diplomatic and ethical issues. The Foreign Office has confirmed that a review is underway, stating it was launched "in light of further information that has now been revealed."
Parliamentary Disclosure and Government Response
Full details regarding Mandelson's payoff are set to be revealed to Parliament after MPs supported a motion calling for the disclosure of papers related to his tenure in government. A Foreign Office spokesperson emphasized that Mandelson's civil service employment was terminated in accordance with legal advice and standard employment terms, with normal HR processes followed.
The spokesperson added, "Further information will be provided to Parliament as part of the government response to the motion passed last week, which is being coordinated by the Cabinet Office." Sources cited by the Sunday Times indicated that Mandelson had initially requested a significantly larger sum than he ultimately received, though this claim has not been independently verified.
As the review progresses, the situation continues to fuel debates over accountability, transparency, and the use of public funds in high-profile diplomatic appointments.