Welfare secretary Pat McFadden has said that Prime Minister Keir Starmer “must take responsibility” as mounting pressure grows for him to resign.
It comes amid reports that a five-figure exit payment was reportedly given to Lord Peter Mandelson when he was sacked as US ambassador after the latest release of the Epstein files. The payment is now being reviewed by the Foreign Office.
Mr McFadden suggested Lord Mandelson give the money back and donate it a charity supporting women and girls affected by domestic violence.
The financial settlement is estimated to be between £38,750 and £55,000 before tax and other deductions, accounting for three months of pay, according to the Times.
His salary is said to have been among the highest paid in the diplomatic service raking in between £155,000 and £220,000 per year.
A Foreign Office spokesperson said: “Peter Mandelson‘s civil service employment was terminated in accordance with legal advice and the terms and conditions of his employment.”
Supporters of David Lammy told the Telegraph that he had been against the appointment of Mandelson and in favour of an extension of Dame Karen Pierce’s term because of her connections to President Donald Trump’s inner circle.