Fresh Demands for Mandelson to Return Taxpayer-Funded Severance After Epstein Scandal
Mandelson Faces Calls to Return Taxpayer Severance Payment

Lord Peter Mandelson is confronting intensified demands to return a taxpayer-funded severance payment he received after being dismissed as Britain's ambassador to the United States. The disgraced peer, who was removed from the prestigious diplomatic role by Prime Minister Sir Keir Starmer in September last year, is believed to have been granted a substantial payoff following his sacking.

Epstein Documents Reignite Controversy Over Appointment

The renewed calls for repayment have been fueled by fresh revelations concerning Lord Mandelson's connections to the convicted paedophile Jeffrey Epstein. Millions of newly-released documents from the US Department of Justice appear to show that Lord Mandelson passed sensitive material to Epstein while serving in Gordon Brown's government.

These disclosures have reignited political controversy over Sir Keir Starmer's initial decision to appoint Lord Mandelson as ambassador to Washington DC, a position said to be worth approximately £160,000 annually. The Prime Minister has since told Lord Mandelson that he "let his country down" through his actions.

Health Secretary Delivers Scathing Criticism

Speaking to Times Radio this morning, Health Secretary Wes Streeting delivered a blistering assessment of Lord Mandelson's conduct, stating unequivocally that the peer should "certainly" return the severance payment he received after being withdrawn from his ambassadorial role.

Mr Streeting declared: "The fact is what we know today is that Peter Mandelson has badly betrayed two prime ministers. He's betrayed our country and its national interest by passing highly sensitive, in some cases, market-sensitive information to outsiders. He's betrayed Epstein's victims by being part of a culture that doesn't take the voices of victims seriously."

Personal Betrayal Felt Across Labour Party

The Health Secretary expressed particular dismay about the impact on his own political party, stating: "I cannot state strongly enough how bitterly that betrayal feels for those of us in the Labour Party who feel very personally let down. And also feel that he, as well as betraying two prime ministers, betraying our country and betraying Epstein's victims, has fundamentally betrayed our values."

Mr Streeting emphasised the contrast between the values that should motivate public service and what he perceived in Lord Mandelson's actions: "The things that motivate us and the things that brought us into politics, which is public service and national interest, not self-service and self-interest."

Precedent for Stripping Public Servants of Benefits

When questioned about whether Lord Mandelson should also lose his pension for his time as ambassador, Mr Streeting acknowledged uncertainty about the specific rules governing such cases but pointed to relevant precedents: "I'm not sure how the rules in that system work. And I'm, you know, candidly, I'm also not clear on what the Government's view on this is. But certainly, as Health Secretary, I have stripped other public servants of their pension in the NHS because of serious crimes and misconduct committed in office. There's a high bar for that. But there is clearly a precedent for that kind of action."

Downing Street Declines to Comment on "HR Matters"

On Tuesday, Downing Street officials refused to comment on what they described as "HR matters" when questioned about the financial terms of Lord Mandelson's dismissal last year. When asked specifically whether any efforts were being made to recover taxpayer funds from Lord Mandelson, Sir Keir Starmer's official spokesman told reporters: "I'm not going to get into HR matters. More broadly, anything of that nature would be set out in annual accounts in line with usual processes."

The controversy continues to generate significant political debate, with cross-party outrage emerging over both the initial appointment and the subsequent handling of Lord Mandelson's departure from diplomatic service. The situation raises broader questions about accountability for public officials and the appropriate consequences for those found to have compromised national interests through their associations and actions.