Foreign Office Launches Review Into Mandelson's Controversial Exit Payment
The Foreign Office has confirmed it is reviewing a substantial five-figure exit payment made to Lord Peter Mandelson following his dismissal as US ambassador. The peer was sacked in September last year after new documents from the Jeffrey Epstein files revealed he had allegedly shared sensitive government information with the disgraced financier while serving as a cabinet minister.
Substantial Settlement Under Scrutiny
According to reports in The Times, Lord Mandelson received a financial settlement equivalent to three months of his taxpayer-funded salary. While his exact salary hasn't been published, the US ambassador role is among the highest paid in the diplomatic service, earning between £155,000 and £220,000 annually. This places his exit payment between £38,750 and £55,000 before tax deductions.
Government sources have acknowledged that a payout was agreed upon, though they haven't confirmed the specific amount. The BBC reports this payment is now under formal review by the Foreign Office, raising questions about the appropriateness of such settlements for officials dismissed under controversial circumstances.
Political Pressure Mounts for Repayment
Welfare Secretary Pat McFadden has publicly urged Lord Mandelson to return the money, suggesting he donate it to charities supporting women who have been victims of abuse. "I don't think it will wash with the public," McFadden stated, expressing his personal sense of betrayal by his former boss.
The Foreign Office has defended its processes, stating: "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." They added that further information would be provided to Parliament as part of the government's response to a motion passed last week.
Starmer's Leadership in Jeopardy
The scandal has placed Prime Minister Keir Starmer's leadership under severe strain. A new Opinium poll reveals that 55% of British voters believe he should resign, with only 23% supporting his continuation. Starmer's net approval rating has plummeted to minus 44, with 61% of respondents disapproving of his performance.
Former Prime Minister Gordon Brown has described the situation as "serious," suggesting Starmer was "too slow to do the right things" in addressing political integrity issues. Meanwhile, London Mayor Sadiq Khan has defended Starmer, comparing politics to a football match and arguing against premature judgments.
By-Election Implications and Wider Fallout
Deputy Labour Leader Lucy Powell has warned that the Mandelson scandal could impact the crucial Gorton and Denton by-election scheduled for 26 February. She described the vote as "a dry run" for the general election and admitted the issue would likely surface during campaigning.
The Liberal Democrats have escalated matters by calling for the Financial Conduct Authority to investigate Lord Mandelson for potential insider trading. Deputy leader Daisy Cooper argued that sharing confidential information with a private financier could have provided unfair market advantages.
Further revelations indicate that Deputy Prime Minister David Lammy had warned Starmer against appointing Mandelson as US ambassador due to his Epstein connections. Starmer is reportedly "devastated" by the scandal and contemplating his political future as the crisis deepens.
