Mandelson ‘wanted over £500,000 payout’ after being sacked over Epstein links

The UK government has released tens of thousands of documents regarding Lord Peter Mandelson’s ambassador appointment after outcry over his links to Jeffrey Epstein.

Cabinet minister Darren Jones said a ‘big number’ of the documents will be released today, though it is still just a fraction of the papers demanded by Parliament.

Last month, MPs ordered the Government to release tens of thousands of documents relating to Lord Mandelson’s appointment in 2024 after questions over how the peer was vetted and what was known about his links to paedophile financier Jeffrey Epstein.

In the files released today, it was revealed that Mandelson was given a £75,000 severance payout, but asked for a much larger number.

He fought to have his entire work contract as US Ambassador – a sum which would have been well above £500,000 – before being fired.

His severance payment consisted of a payment in lieu of notice element – £40,329.50, with a special payment of £34,670.50 subject to a tax exemption on the first £30,000. The remaining £4,670.50 was subject to normal tax and NI deductions.

An email titled ‘PM Settlement’ from cabinet employee Alice McCullough reads: ‘If there’s any pushback, it might be worth mentioning that he opened negotiations asking us to pay out his contract (over £500k).’

The files also noted that Mandelson sought advice from a Senior Counsel in employment law, aiming to focus on the ‘reasonableness of the PM’s decision.’

What do the files say?

His relationship with Jeffrey Epstein

In a section entitled ‘Relationship With Jeffrey Epstein’, the report said: ‘… Epstein appeared to ‘maintain a particularly close relationship with Prince Andrew, the Duke of York and Lord Peter Mandelson, a senior member of the British government’.

‘The report cited Epstein’s personal records, which showed contact beginning in 2002 and continuing throughout the 2000s,

‘After Epstein was first convicted of procuring an underage girl in 2008, their relationship continued across 2009-2011, beginning when Lord Mandelson was business minister and continuing after the end of the Labour government. Mandelson reportedly stayed in Epstein’s House while he was in jail in June 2009.’

Chief Secretary to the Prime Minister Darren Jones told MPs that the due diligence report on Lord Mandelson ‘did not expose the depth and extent’ of his relationship with Epstein.

Starmer was warned of risks in appointing Mandelson

The files also found that Sir Keir Starmer was warned that appointing Mandelson came with risks.

One note said: ‘If anything goes wrong, you could be more exposed as the individual is connected to you personally.’

Jonathan Powell, NSA, found the appointment process of Lord Mandelson ‘weirdly rushed’ and ‘unusual’.

The files noted that Powell raised concerns about him and his reputation to cabinet employee Morgan McSweeney.

Officials carried out welfare checks after sacking Mandelson

After being sacked, Mandelson wrote in an email to staff: ‘My chief concern is leaving the US and arriving in the UK with the maximum dignity and minimum media intrusion, which I think is to the advantage of all concerned…

‘Not least because I remain a crown/civil servant and expect to be treated as such. How is the FCDO assisting in this?’

Officials were told to carry out welfare checks on Lord Mandelson every day ‘for a while’ after his sacking.

The message to Foreign Office officials said: ‘It would also be great to know that there has been a welfare check and to do one each day if that’s OK for a while.’

What has the reaction been?

The timing of the release has led to accusations from the Conservatives that the Prime Minister is attempting to ‘dodge questions’ about Lord Mandelson’s vetting by publishing the documents after PMQs.

Shadow Cabinet Office minister Alex Burghart said: ‘His fingers are all over this. He’s already admitted that he knew about Mandelson’s ongoing relationship with Epstein when he appointed him.’

The Government has also agreed a framework with the Metropolitan Police on which documents can be released without prejudicing the ongoing police investigation into Lord Mandelson.

Lord Peter Mandelson should never have been appointed, Chief Secretary to the Prime Minister Darren Jones said.

In his statement, Jones told the Commons: ‘The victims of Epstein have lived with trauma that most of us can barely comprehend. They’ve had to relive it again and again, and they have had to see accountability delayed and too often denied.

‘We must all learn this hard lesson, and a culture which dismisses women’s experiences far, far too often and too easily, Peter Mandelson should never have been appointed, and the Government will comply with the humble address.’

Lord Mandelson was arrested on February 23 on suspicion of misconduct in public office, having been accused of passing sensitive information on to Epstein during his time as business secretary.

He was subsequently bailed, but later released from his bail conditions, although he remains under investigation.

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