The UK government has launched an inquiry into Peter Mandelson’s severance payment following his dismissal as ambassador to Washington in September 2025 due to connections with convicted sex offender Jeffrey Epstein.
Mandelson was removed from his post after just seven months, as documents published by the US Department of Justice exposed his relationship with the American financier. Fresh revelations from documents released in late January have intensified the political crisis within Keir Starmer’s government.
Police are now investigating whether Mandelson, a former Labour minister, shared market-sensitive information with Epstein during his tenure in Gordon Brown’s government from 2008 to 2010. Two properties linked to Mandelson were searched on Friday.
British media reports claim Mandelson received a severance payment of between £38,750 and £55,000 (~€44,500 and €63,000) when he was dismissed by Keir Starmer.
A spokesperson for the Foreign Office stated on Sunday that Mandelson’s contract ended “in accordance with legal advice and the terms governing his employment,” but confirmed that “an inquiry has been launched in light of new evidence and the ongoing police investigation.”
Labour Minister Pat McFadden said on Sunday that Mandelson should either “return the money or donate it to charity.”
McFadden also voiced his support for Prime Minister Keir Starmer, who is facing calls for resignation from within his own party. “This has been a difficult week, but I believe we must stand by the Prime Minister and support him. He has acknowledged his serious error and apologised for it,” McFadden said on BBC.
On Saturday, former Labour Prime Minister Gordon Brown also defended Starmer, describing him as “a man of integrity” who had been “betrayed” by Mandelson.
Responding to inquiries from AFP on Sunday, a spokesperson for Mandelson stated that he “deeply regrets, and will regret until his dying breath, believing Epstein’s lies about his criminal behaviour.”
