US EditionPeter Mandelson threatened legal action without £500k severance after being sacked
Lord Mandelson sought over £500,000 in severance but settled for £75,000 to avoid costly legal action and reputational damage to the UK government, documents show.
- The FCDO confirmed on Wednesday that Lord Peter Mandelson received a £75,000 settlement to end his ambassadorship, citing reputational concerns and legal costs as reasons.
- Mandelson asked for the remainder of his contract to be paid up, which would have amounted to £547,201, but FCDO officials warned legal costs could reach "several hundred thousands of pounds" and proposed a modest settlement to avoid reputational damage and an employment tribunal.
- The Treasury agreed to pay £40,329.50 in lieu of notice and £34,670.50 as a severance, with Robbins' business case describing the deal as "good value for money".
- Parliament passed a motion demanding release of all files on Lord Mandelson's appointment, while opposition figures said constituents would be "disgusted" and some MPs demanded repayment of the £75,000 payout.
- Internal emails show U.S. Department of Justice material suggested Mandelson shared confidential information with Epstein, he was arrested in February 2026, and remains under investigation.
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15 Articles
Mandelson files released at sensitive time for UK relations with Donald Trump
The release of the “Mandelson files” comes at a difficult moment in relations between the US and UK. It is unlikely to ease tensions. The UK government has submitted to pressure from MPs to disclose files relating to the hiring and vetting of Peter Mandelson as UK ambassador to the US. Questions have been raised about how much officials, including the prime minister, Keir Starmer, knew about Mandelson’s friendship with paedophile Jeffrey Epstein…
Evening Standard
Lord Mandelson handed £75,000 payout after contract as US ambassador terminated
Emails have suggested he initially requested more than £500,000.
The affair with Lord Peter Mandelson shakes Downing Street.
Mandelson Files released: All the major talking points and notable names mentioned
After months of hearing about the Epstein Files, the UK now has the ‘Mandelson files’ which were released by the UK government today. These files, which were released today, are, of course, in relation to former UK ambassador to the US Peter Mandelson. Mandelson, a former acquaintance of disgraced paedophile financier Jeffrey Epstein, was sacked from his role in the Labour government last September after emails emerged showing Mandelson encourag…
Documents show he asked the British government to pay him his full salary for his four-year term – His dismissal was linked to his relationship with Epstein
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