Mandelson urged to hand back payoff after sacking over Epstein link
Mandelson has been told he should return the payoff or give the money to charity
A Cabinet minister has urged Lord Peter Mandelson to return the payoff he received after being dismissed as ambassador to the US, or donate the sum to charity, following fresh revelations about his relationship with convicted child sex offender Jeffrey Epstein.
The peer’s sacking was initially linked to his ties with Epstein, but new documents have intensified the controversy, indicating he leaked market-sensitive information to his associate while serving as a government minister.
Work and Pensions Secretary Pat McFadden suggested the taxpayer-funded handout, potentially amounting to tens of thousands of pounds, should be given to a victims’ charity.
The escalating scandal surrounding Lord Mandelson’s appointment to the prestigious diplomatic role has prompted calls for Sir Keir Starmer to resign, with Fire Brigades Union (FBU) general secretary Steve Wright stating that "everybody’s thinking it".
Mr McFadden, a close ally of the Prime Minister, firmly rejected these demands, cautioning that a change in leadership could trigger "chaos and uncertainty".
Addressing the party’s commitment to move beyond past political scandals, the Cabinet Minister told Sunday morning political programmes: "Maybe one way we can be different is to not drop the pilot after 18 months and to stick with a leader and have consistency in leadership."
He continued: "I think he’s got a five-year mandate, which was just voted for 18 months or so ago in a general election. His task is by no means complete, barely begun. And I also think it is not good for the country to change its prime minister every 18 months or two years – leading to chaos and uncertainty, economically, politically and reputationally around the world.
“So I know this has been a difficult week, but I think we should stick with the Prime Minister, support him. He admits he’s made a bad mistake here. He has apologised for it, and I’m sure he willing learn from that going forward."
Mr McFadden asserted that Sir Keir "has acted in good faith throughout this" and is "horrified" by the recent disclosures regarding Lord Mandelson’s connections with Epstein.
He also dismissed calls for the dismissal of Sir Keir’s chief of staff, Morgan McSweeney, who many blame for Lord Mandelson’s appointment, as "beside the point" given it was ultimately a prime ministerial decision.
However, FBU chief Mr Wright offered a contrasting view, stating: "Unfortunately we’re seeing MPs being wheeled out again today to sweep up the mess behind the Prime Minister at the moment. And it seems that the Prime Minister isn’t taking advice from elected people within his own Government.
“We’ve seen that he didn’t listen to the former deputy prime minister. He hasn’t listened to his current Deputy Prime Minister. He’s listening to a factional group which are making bad decisions, it seems. And I want to see the change that was promised and that this country needs."
Mr McFadden clarified that he did not discuss the appointment with Sir Keir and denied any prior knowledge of Lord Mandelson’s friendship with Epstein, despite having worked closely with him.
He served as Lord Mandelson’s deputy when the disgraced peer, then business secretary, was reportedly sharing confidential government information about the global financial crisis with Epstein.
Mr McFadden described feeling "a mixture of bewilderment, anger" and betrayal upon seeing correspondence between his former boss and Epstein, adding: "It’s possible to have quite a close political relationship with someone, and there are sides of their life that you don’t know about and have no involvement in."
Regarding colleagues who reportedly warned the Prime Minister against offering Lord Mandelson the Washington role, Mr McFadden stated they "have to answer for themselves".
Allies of Deputy Prime Minister David Lammy and Angela Rayner, both considered potential successors to Sir Keir, had reportedly expressed reservations.
"They’re over 21, you know, they’ll have to answer for themselves on what they’re saying," Mr McFadden remarked concerning these interventions.
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