A demand has been made for Peter Mandelson to either return a significant severance payment or donate it to a charitable cause.
The disgraced former diplomat is reported to have received a substantial sum of money when he was dismissed following revelations regarding his association with convicted sex offender Jeffrey Epstein. Pat McFadden, the Secretary for Work and Pensions and a long-time acquaintance of Mandelson, suggested that he should give back the money or contribute it to a charity focused on addressing violence against women and girls.
McFadden urged Mandelson to take action, stating, “Either return the payment or redirect it to a charitable cause, particularly one dedicated to combating violence against women and girls.” Mandelson allegedly received a payout equivalent to three months’ salary upon his removal as ambassador to the White House in September, potentially amounting to £55,000 before deductions, according to reports.
Authorities conducted searches at Mandelson’s properties in central London and Wiltshire last Friday following allegations of misconduct in public office. Mandelson stands accused of disclosing confidential government information to Epstein during his tenure as Business Secretary under Gordon Brown.
The leaked information pertained to an EU financial rescue package during the aftermath of the 2008 economic crisis, which could have been exploited by financial institutions for significant gains. Keir Starmer recently accused Mandelson of dishonesty prior to his appointment as ambassador to the White House in 2024. Mandelson, a prominent figure in the New Labour movement who recently resigned from the House of Lords, claimed to have minimal acquaintance with Epstein, a statement contradicted by the Prime Minister.
Further revelations indicated that Mandelson had provided advice to Epstein after his conviction for child sex offenses. Correspondence uncovered shows that Mandelson sought Epstein’s counsel before purchasing a property near Regent’s Park in June 2011. Epstein confirmed the financial aspects of the deal in emails exchanged with Mandelson.
Mandelson’s financial dealings have previously drawn scrutiny when he had to step down as Trade and Industry Secretary under Tony Blair for failing to disclose an interest-free loan from Geoffrey Robinson. Subsequently, Mandelson acquired property in Primrose Hill and his current residence after relinquishing the loan-funded house in Notting Hill. Recent disclosures from US authorities regarding Epstein’s financial transactions revealed multiple payments referencing Mandelson as the recipient in the early 2000s.
Mandelson, who refutes any criminal involvement, expressed no recollection of these payments last week. The Liberal Democrats have called for an investigation by the Financial Conduct Authority into the alleged information leaks. The news of Mandelson’s severance package post-termination has amplified pressure on the government.
Reacting to the revelations, Lib Dem deputy leader Daisy Cooper criticized Mandelson’s retention of the severance pay as disrespectful to the public and victims of Epstein. Shadow Foreign Secretary Priti Patel condemned the taxpayer-funded payout to Mandelson as a betrayal of Epstein’s victims, urging the government to recover the entire sum.
The Foreign Office released a statement clarifying that Mandelson’s employment termination in October 2025 adhered to legal guidelines and standard civil service procedures. The government committed to disclosing documents related to Mandelson’s dismissal and severance benefits as part of an ongoing parliamentary inquiry.
Mandelson’s representatives issued a statement expressing regret for his association with Epstein and emphasizing his lack of awareness regarding Epstein’s criminal activities until after the latter’s demise in 2019. Mandelson conveyed deep remorse for the lack of protection afforded to vulnerable women and girls affected by Epstein’s actions.
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