Cabinet Minister Calls On Peter Mandelson To Return Pay Off

A cabinet minister has called on Peter Mandelson to give up the five-figure taxpayer-funded pay-off he received after being sacked as the UK’s ambassador to Washington.

Work and pensions secretary Pat McFadden suggested the disgraced peer donate the money to a charity for female victims of violence.

The Sunday Times reported that Mandelson received between £38,750 and £55,000 – equivalent to three months’ salary – after Keir Starmer sacked him last September over his association with the convicted paedophile Jeffrey Epstein.

The former Labour peer now faces a criminal investigation into allegations he passed market-sensitive information to Epstein when he was business secretary between 2008 and 2010.

On Sky News this morning, McFadden was asked whether Mandelson should give up the pay-off.

He said: “I think he probably should, yes – either give it back or give it to a charity, perhaps one involving violence against women and girls.

“I think taking a pay-off in these circumstances, I don’t think the public will think much of that.”

A No 10 source told the Press Association: “Given what we know now, Mandelson should either pay the money back or give it to a charity to support victims.”

Shadow foreign secretary Priti Patel said: “A five-figure taxpayer funded payout for Lord Mandelson is a disgusting betrayal Epstein’s victims.

“The government must ensure Mandelson’s golden goodbye is recovered in full.”

A Foreign Office spokesman said the pay-off was being “reviewed” by officials.

He said: “Peter Mandelson’s civil service employment was terminated in September 2025 in accordance with legal advice and the terms and conditions of his employment.

“As we have consistently said to parliament, normal civil service HR processes were followed.

“Further information will be provided to parliament as part of the government response to the motion passed last week which is being co-ordinated by Cabinet Office.

“A review has been instigated in light of further information that has now been revealed and the ongoing police investigation.”