Published: 10:17 GMT, 4 February 2026 | Updated: 10:18 GMT, 4 February 2026

Lord Peter Mandelson today faced fresh calls to hand back a taxpayer-funded payoff from his sacking as US ambassador.

The disgraced peer is thought to have received a substantial severance payment after he was dismissed as Britain's top diplomat in Washington DC.

He was removed from the role, said to be worth around £160,000-a-year, by Sir Keir Starmer in September last year over his friendship with paedophile Jeffrey Epstein.

Fresh revelations about Lord Mandelson's ties to Epstein - included in millions of documents newly-released in the US - have since reignited a row over the Prime Minister's initial decision to appoint him as ambassador.

Sir Keir, who handpicked the ex-Cabinet minister as US ambassador before being forced to sack him, has told Lord Mandelson he 'let his country down'.

It came after US Department of Justice files appeared to show Lord Mandelson passing sensitive material to Epstein while serving in Gordon Brown's government.

Speaking to Times Radio this morning, Health Secretary Wes Streeting said Lord Mandelson had 'badly betrayed' two prime ministers.

He added that Lord Mandelson should 'certainly' return a severance payment he received after being withdrawn as US ambassador.

Lord Peter Mandelson is facing fresh calls to hand back a taxpayer-funded payoff from his sacking as US ambassador