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Peter Mandelson threatened legal action without £500k severance after being sacked
Lord Mandelson sought £547,201 after dismissal but accepted a £75,000 settlement to avoid costly legal action and reputational damage, Foreign Office documents reveal.
- 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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Evening Standard+2 Reposted by 2 other sources
Lord Mandelson handed £75,000 payout after contract as US ambassador terminated
Emails have suggested he initially requested more than £500,000.
·London, United Kingdom
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The affair with Lord Peter Mandelson shakes Downing Street.
·Berlin, Germany
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Total News Sources19
Leaning Left7Leaning Right6Center3Last UpdatedBias Distribution44% Left
Bias Distribution
- 44% of the sources lean Left
44% Left
L 44%
C 19%
R 37%
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