Labour MPs are sounding the alarm over Peter Mandelson, describing the former EU Trade Commissioner and senior party figure as “a bomb waiting to go off.”
Following his abrupt sacking as ambassador to the U.S., whispers and reports about his ties to convicted paedophile Jeffrey Epstein have raised fears about the potential fallout for Prime Minister Sir Keir Starmer.
The Epstein Emails That Shook Westminster
A Saturday report in The Times revealed that Downing Street had already been made aware of damning emails between Mandelson and Epstein before Sir Keir stood in the Commons and expressed his “full confidence” in him.
The messages reportedly show Mandelson offering love and support to Epstein, even urging him to seek early release after his conviction for child sex offences.
Despite the troubling nature of the emails, Mandelson is said to feel “hung out to dry” by the Prime Minister.
For someone so deeply embedded in Sir Keir’s inner circle, with access to confidential information, this sense of betrayal has some MPs worried.
“He must know enough to bring down Keir if he wanted to,” one MP warned.
Refusal to Resign and a Potential Payout
Mandelson has refused to step down and remains on the government payroll, meaning he could be entitled to a six-figure taxpayer-funded payout from his £200,000-a-year role as ambassador.
The speed of his dismissal—just 24 hours after receiving public backing from Sir Keir—has raised questions about whether proper employment law procedures were followed.
The Government may need to prove that Mandelson materially misled ministers about his relationship with Epstein to avoid paying compensation.
The Foreign Office reportedly received the cache of emails more than 30 hours before they were published and a full day before Sir Keir publicly supported Mandelson.
Tory Critics Claim Misleading the Public
Tory leader Kemi Badenoch seized the moment during Prime Minister’s Questions, accusing Sir Keir and Labour MPs of misleading the public over what they knew about Mandelson and Epstein.
“Looks like the Prime Minister and Labour MPs spent the week lying to the whole country about what they knew regarding Mandelson’s involvement with convicted paedophile Jeffrey Epstein,” she said.
Mandelson’s Side of the Story
According to The Times, Mandelson feels “ill-treated,” believing the Prime Minister bowed to political pressure rather than addressing the situation fairly.
Allies suggest that during his vetting interview, Mandelson was specifically asked about Epstein and admitted maintaining contact over several years.
He could not provide the emails, they say, because they were stored in an old account no longer accessible.
Supporters of Sir Keir describe him as “frustrated and a bit angry,” forced to handle the fallout from others’ conduct rather than focusing on his own agenda.
The situation has been framed as a result of hiring someone who “didn’t tell him the full truth.”
High-Stakes Payouts for Senior Officials
The case has also sparked discussions about potential payouts for senior civil servants.
Sir Philip Rutnam, the former Home Office permanent secretary who resigned after accusing Priti Patel of bullying, settled his claim for £340,000—a reminder that Mandelson’s financial settlement could be substantial if he pursues it.