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Anas Sarwar Calls for Peter Mandelson to Return Severance Payment Amid Epstein Scandal

3/12/2026, 11:28:08 PM

Core Event: Demands for Repayment of Severance Payment

Scottish Labour leader Anas Sarwar has publicly demanded that Lord Peter Mandelson return a £75,000 severance payment he received after being dismissed as the UK's ambassador to the United States. Sarwar's call comes in light of Mandelson's controversial ties to the late billionaire Jeffrey Epstein, who was convicted of sex trafficking and other crimes. Mandelson was sacked by Prime Minister Keir Starmer in September 2022 after revelations surfaced regarding his close relationship with Epstein and allegations that he leaked confidential government information to him.

Background & Context: Mandelson's Dismissal and Severance Payment

Mandelson's severance payment was negotiated down from an initial request of over £500,000, which represented the full salary he would have earned during a four-year term. The payment included £40,330 for not receiving three months' notice and a £34,670 termination payment. The decision to grant this payment has faced scrutiny, particularly given the circumstances surrounding his dismissal, which included accusations of dishonesty regarding his relationship with Epstein.

Official Statements & Responses

Anas Sarwar labeled Mandelson a "traitor" and insisted he should return the severance payment, suggesting it be donated to charities supporting victims of exploitation. Sarwar stated, “He’s someone that should never have been considered or appointed as ambassador and he should do the right thing and return the money.” Other Labour figures, including Scottish Secretary Douglas Alexander, echoed this sentiment, urging Mandelson to repay the funds. Nick Thomas-Symonds, a Cabinet Office minister, expressed similar moral outrage, stating, “It is incredibly difficult to even think that that money is still being retained.”

Criticism & Opposition: Calls for Accountability

The Liberal Democrats have also called for Mandelson to donate his severance payment to charity, emphasizing the need for accountability in light of his associations with Epstein. Critics argue that retaining the payment undermines the seriousness of the allegations against him and the suffering of Epstein's victims.

Conflicting Reports & Gaps: Ongoing Investigations

Mandelson's dismissal and the subsequent fallout have led to ongoing investigations, including a criminal probe by the Metropolitan Police into allegations of misconduct in public office. Documents released by the US Department of Justice have suggested that Mandelson shared sensitive information with Epstein, raising further questions about his conduct. The investigation remains active, with Mandelson having been released from bail conditions but still under scrutiny.

What's Next: Further Document Releases

The UK government has agreed to release thousands of documents related to Mandelson's appointment and vetting process, which are expected to shed more light on the nature of his relationship with Epstein and the decision-making that led to his appointment as ambassador. The first tranche of these documents was published recently, revealing significant concerns about Mandelson's past and the reputational risks associated with his appointment.

Verbatim Quotes

  • “When asked by journalists if Lord Mandelson should return the payment, Sarwar said: “Absolutely, I mean this is a man who has proven to be a traitor to his country.” — Anas Sarwar, Scottish Labour Leader
  • “Nick Thomas-Symonds told Sky News: “I frankly share the moral outrage that Peter Mandelson is still in possession of that £75,000.” — Nick Thomas-Symonds, Cabinet Office Minister
  • “The disgraced ambassador must donate any severance payment he received in full to charity,” — Liberal Democrats Statement

This ongoing situation highlights the complexities of political accountability and the implications of personal relationships on public service roles.