Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Adidas, Calvin Klein and Uniqlo ads banned for greenwashing

      Adidas logo displayed prominently on a sleek storefront, representing the brands iconic presence in the sportswear industry.

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Advertising at World Cup: Levi’s genius, hydration breaks and dodging rules

      Breaking news event with diverse crowd gathered outside urban office building on sunny day, capturing vibrant city life.

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Procter & Gamble axes relationship with Kremlin propaganda channel

      007 PG news article image featuring a business meeting with executives discussing strategy at a modern conference table

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Wednesday 11 March 2026 3:04 pm  |  Updated:  Wednesday 11 March 2026 4:44 pm

Mandelson wanted a near £550,000 payout – and got £75,000 

By: Mauricio Alencar

Politics and Economics Reporter

Add as a preferred source on Google
Peter Mandelson meets officials at the White House, highlighting diplomatic discussions and international relations.
Lord Peter Mandelson asked for a huge payout after being sacked.

Peter Mandelson demanded a £547,201 payout for the remainder of his time as UK ambassador to the US after being sacked, with a settlement of £75,000 being agreed with the Foreign Office, official documents have shown. 

In the first tranche of documents to be released by the government relating to Mandelson’s time as ambassador, it has been confirmed that the former Labour cabinet minister demanded a hefty sum for the remainder of his work as a diplomat when he was sacked last year.

This request came despite his sacking, with Sir Keir Starmer dismissing his ambassador following the confirmation that Mandelson appeared to maintain a close relationship with Jeffrey Epstein after his first conviction. 

Mandelson is currently being investigated by the police over the nature of his relationship with Epstein. He was arrested on suspicion of misconduct in public office and later released on bail, with files in the US allegedly showing he leaked sensitive information to the late paedophile around the time of the financial crisis. 

Documents released by the Cabinet Office on the vetting process appear to show Foreign Office permanent under-secretary Oliver Robbins arguing that the £75,000 payment was “good value for money”. 

The foreign secretary and No 10 had sight of the severance package offered to Mandelson. 

One foreign office official, the HR boss Mark Power, warned that a legal case over Mandelson’s severance payment risked the “reputational damage” to the Foreign Office and cost “several hundred thousands of pounds”.

Emails also revealed that Mandelson’s “chief concern” was to arrive in the UK after his sacking “with the maximum dignity and minimum media intrusion”.

They also suggest that a No 10 official, Alisa Terry, asked about a daily “welfare check” on Mandelson after the sacking.

Mandelson wrote to colleagues in Washington upon his dismissal: “The circumstances surrounding the announcement today are ones which I deeply regret.

“I have no alternative to accepting the Prime Minister’s decision and will leave a position in which I have been so incredibly honoured to serve.

Starmer warned on Mandelson-Epstein links

The documents also showed that the Prime Minister was warned about the “reputational risks” around the appointment given Mandelson’s relationship with Epstein.

One note on the vetting process highlighted a 2019 report by JP Morgan that Mandelson maintained a relationship with Epstein after his conviction and that he was a founder of an ocean conservation group funded by the paedophile.

Read more

‘Don’t feel great’: Treasury minister irked by Darren Jones and Mandelson texts

Darren Jones speaking at a conference podium, addressing business professionals, dressed in a formal suit and tie.

National security adviser Jonathan Powell, who was a political appointee, raised the alarm on the vetting process for Mandelson.

He said the process was “weirdly rushed” and unusual while noting that Foreign Office permanent under-secretary Philip Barton also raised concerns.

Powell also shared copies of his exchanges with Mandelson with Starmer, wherein the former Labour minister appeared to try to set up a meeting between Epstein and former Prime Minister Tony Blair.

Former Cabinet Secretary Simon Case also told Starmer: “If anything goes wrong, you could be more exposed as the individual is more connected to you personally.”

Warning signs ignored

Nevertheless, the Prime Minister confirmed his approval to appoint Mandelson after discussions with the then foreign secretary David Lammy, who appeared to agree with the recommendation.

Starmer’s former chief of staff Morgan McSweeney appeared to state the “issues had been addressed” around Mandelson’s relationship with Epstein.

The first publication of documents will fuel concerns over the reasoning of the Prime Minister’s initial appointment within months of taking office and subsequent sacking lack November given repeated warnings over the risks of selecting Mandelson for the UK’s top diplomatic posting.

At the time, Starmer said he sacked Mandelson as he did not know about the “extent” of his relationship with Epstein.

More documents are expected to be released in the coming weeks.

Chief secretary to the Prime Minister Darren Jones said the initial report on Mandelson did not give full details on his relationship with the paedophile and added that Starmer had already apologised for appointing the former peer, who still retains his Lords title despite being kicked out of the chamber.

“Whilst the documents point to public reports of an ongoing relationship between Peter Mandelson and Jeffrey Epstein, the advice did not expose the depth and extent of their relationship, which only became apparent after the release of further files by Bloomberg and then the United States Department for Justice,” Jones said.

“After the Prime Minister reviewed the Cabinet Office due diligence, that noted public reporting on Peter Mandelson’s relationship with Jeffrey Epstein, questions were put to Peter Mandelson by advisers in Number 10, and Peter Mandelson responded. These are matters that are currently the subject of an ongoing police investigation.”

Read more

Mandelson Files add insult to injury, but the patient was already beyond saving

Peter Mandelson

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

People & Organisations

  • Keir Starmer
  • Labour Party
  • Lord Mandelson
  • mandelson
  • Peter Mandelson
  • UK Government
  • US ambassador

Trending Articles

  • Adidas, Calvin Klein and Uniqlo ads banned for greenwashing

  • Advertising at World Cup: Levi’s genius, hydration breaks and dodging rules

  • Episode 94: Northumberland Plate, Irish Derby and Marco Botti interview

  • Ticket reseller StubHub fined nearly £1m for hiding fees

  • Circus can be a Star attraction in the Plate

More from CityAM

  • ‘Don’t feel great’: Treasury minister irked by Darren Jones and Mandelson texts

    Politics
    Darren Jones speaking at a conference podium, addressing business professionals, dressed in a formal suit and tie.
  • Mandelson Files add insult to injury, but the patient was already beyond saving

    Politics
    Peter Mandelson
  • Pat McFadden: I have not apologised to Rachel Reeves over ‘tax to pay benefits’ text

    Politics
    Pat McFadden speaking at a podium during a press conference, addressing current general news topics.
  • Starmer resigns as Prime Minister

    Politics
    Business conference attendees networking at a corporate event with banners and presentation screens in the background
  • In 23 months Labour has dragged the UK economy to its knees

    Economics
    Keir Starmer
  • John Healey has delivered a fatal blow to Starmer’s premiership

    Opinion
    Defence secretary John Healey is leading calls for further investment in the sector.
  • Replace Reeves if Starmer goes, voters tell Labour

    Politics
    Keanu Reeves in a thoughtful pose, wearing a formal suit, looking contemplative during a business meeting or press event.
  • As it happened: How Starmer resigned and when Streeting backed Burnham

    Politics
    Keir Starmer appearing nervy during political event, wearing a suit and tie, addressing an audience with a concerned expre...

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies