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Mandelson should hand back payoff after sacking over Epstein link, Pat McFadden says

Work and Pensions Secretary Pat McFadden urged Lord Mandelson to donate his £38,750-£55,000 taxpayer-funded payout to victims' charities amid ongoing scandal and investigations.

  • On Sunday, Work and Pensions Secretary Pat McFadden urged Lord Peter Mandelson to return the taxpayer-funded payoff or donate it to a victims' charity while defending Sir Keir Starmer.
  • Documents released earlier this week showed Mandelson was sacked last year over his relationship with Epstein, including passing market-sensitive information and receiving $75,000, while warning Epstein about the €500 billion eurozone bailout.
  • FCDO HR negotiated the severance, resulting in a three-month exit payment of £38,750–£55,000, consistent with contractual arrangements.
  • Sir Keir Starmer is under growing pressure as MPs ordered ministers on Wednesday to release files, while opposition parties and unions demand the payout be clawed back.
  • With the payment now under review, the Foreign Office says further information will be shared with Parliament and Deputy Assistant Commissioner Hayley Sewart warned `This will be a complex investigation requiring a significant amount of further evidence gathering and analysis. It will take some time to do this work comprehensively and we will not be providing a running commentary`.
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Mandelson should hand back payoff after sacking over Epstein link, minister says

Pat McFadden said the disgraced former ambassador to the US should return the money or give it to charity.

·London, United Kingdom
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NZ Herald broke the news in Auckland, New Zealand on Sunday, February 8, 2026.
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