Mandelson should hand back Foreign Office payoff or give it to charity, cabinet minister says
Table of Contents
- Mandelson should hand back Foreign Office payoff or give it to charity, cabinet minister says
- Starmer admits he ‘made a bad mistake’ but should stay PM as he has a ‘five-year mandate’, minister says
- Minister says he feels angry and betrayed over Mandelson’s actions
- Mandelson should hand back Foreign Office payoff or give it to charity, cabinet minister says
- Foreign Office to review Mandelson’s reported five-figure US ambassador payoff
The work and pensions secretary, Pat McFadden, has spoken to Trevor Phillips on his Sky News politics programme.
McFadden was asked about the size of Mandelson’s payout from the Foreign Office. McFadden said he did not know how much Mandelson was entitled to, adding that figure would be negotiated between “him and his employers”.
Asked if he should give it back or donate it to charity on a moral basis, the minister said: “I think he probably should, yes. Either of those – either give it back or give it to a charity.
“Perhaps one involving violence against women and girls. I think taking a payoff in these circumstances, I don’t think the public will think much of that.”
Key events
Pat McFadden said Peter Mandelson, a former EU trade commissioner and ex-business secretary, was appointed ambassador to the US because he was seen as a skilled political operator with the Trump administration.
The work and pensions secretary told Sky News:
In the end the judgment was, they were looking for someone who could operate at the highest political level with the Trump administration, who knew business, who knew trade.
Now that turns out to have been the wrong decision, and it’s blown up in the most spectacular manner. But it’s important for your viewers to understand why on earth was this appointment made in the first place, and that is the reason.
Starmer admits he ‘made a bad mistake’ but should stay PM as he has a ‘five-year mandate’, minister says
McFadden defended Keir Starmer and his embattled chief of staff, Morgan McSweeney, who are both under intense pressure over Mandelson’s ambassador appointment.
McFadden said:
I believe he (the prime minister) should stay. 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 is 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 will learn from that going forward.
McFadden added that Starmer “has acted in good faith throughout this” and is “horrified” by the recent revelations about Mandelson’s ties with Epstein.
Although Starmer has apologised for believing Mandelson’s “lies”, he has not apologised for giving him the job even though it was known at the time that Mandelson had continued his relationship with Epstein even after the latter had been convicted of trafficking a child for sex.
Asked whether McSweeney, who was close to Mandelson, should go, McFadden said: “I don’t think he should … In the end, it’s a prime ministerial appointment, and I think the stuff about Morgan McSweeney is sort of beside the point.”
The Metropolitan police is investigating Peter Mandelson over allegations of misconduct in public office. Police have already searched two properties connected to Mandelson as part of the investigation into claims that he passed market-sensitive information to Jeffrey Epstein.
McFadden was asked by Trevor Phillips whether he was aware if the police had approached Keir Starmer during their inquiries into Mandelson. “I am not aware of that,” McFadden said. Starmer has not been accused of any wrongdoing.
Minister says he feels angry and betrayed over Mandelson’s actions
McFadden is asked how he feels given he has known Mandelson a long time. He says how he feels is secondary to the feelings of the “women who were involved in this”, which is the most important thing in what he describes as a “terrible tale”.
McFadden said:
How I feel is a mixture of bewilderment, anger, and a sense of… this is somebody I’ve known on a political level for 30 years.
I was his minister, junior minister, at the department of business during the financial crisis. And, you know, that was a time of all hands to the pumps, banks collapsing, businesses collapsing, people wondering whether they could keep their homes or not.
And the idea that he was live downloading some of the information about that to this person in America who I’d never heard of, for many years afterwards – it is shocking.
Asked if he feels “betrayed”. McFadden replied: “Yeah I do and it is a strange thing in politics that you can have a close political relationship with someone but there can be this entire other side of their life that you have no knowledge of and no involvement in whatsoever which has all exploded into the public realm.”
As a reminder, recent disclosures from the Epstein files appeared to suggest Peter Mandelson sent emails to Jeffrey Epstein containing confidential information that the government was receiving to deal with the global financial crash while he was business secretary under Gordon Brown. You can read more in our explainer here.
Mandelson should hand back Foreign Office payoff or give it to charity, cabinet minister says
The work and pensions secretary, Pat McFadden, has spoken to Trevor Phillips on his Sky News politics programme.
McFadden was asked about the size of Mandelson’s payout from the Foreign Office. McFadden said he did not know how much Mandelson was entitled to, adding that figure would be negotiated between “him and his employers”.
Asked if he should give it back or donate it to charity on a moral basis, the minister said: “I think he probably should, yes. Either of those – either give it back or give it to a charity.
“Perhaps one involving violence against women and girls. I think taking a payoff in these circumstances, I don’t think the public will think much of that.”
Foreign Office to review Mandelson’s reported five-figure US ambassador payoff
Good morning and welcome to our live coverage of UK politics as speculation over Keir Starmer’s future as prime minister continues.
Peter Mandelson is under increasing pressure to return the payoff he received after being sacked as ambassador to the US in September over his friendship with the late child sex offender Jeffrey Epstein.
The taxpayer-funded payoff he received after being dismissed last year could be as high as £55,000 before tax and deductions, the Sunday Times reported, with the exit payment equivalent to three months’ salary from the Foreign Office.
Although the salary has not been publicly listed by the government, the US ambassador post usually ranks at the highest end in the diplomatic service – between £155,000 and £220,000 per year.
Full details about Mandelson’s payoff will be revealed to parliament after MPs backed a call for disclosure of papers relating to his time in the government.
Sources told the Sunday Times that Mandelson had asked for a much more money than he ended up receiving. We have not been able to independently verify the contents oft the Sunday Times’ report yet.
Allies of Starmer said the peer should give the taxpayer-funded handout back or donate it to a victims’ charity. The Foreign Office said a review had been launched “in light of further information that has now been revealed”.
A Foreign Office spokesperson said:
Peter Mandelson’s civil service employment was terminated in accordance with legal advice and the terms and conditions of his employment.
Normal civil services 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 coordinated by the Cabinet Office.
date:2026-02-08 08:44:00
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