Government settles after challenge by sacked Foreign Office chief over Peter Mandelson vetting

The government has reached an out-of-court settlement with a senior civil servant who challenged his sacking by Sir Keir Starmer over Lord Peter Mandelson’s security vetting.

Sir Olly Robbins earlier this year requested a judicial review after he was removed as the top civil servant at the Foreign Office.

The FDA union, which represented him in the challenge, announced on Friday that the government had chosen to settle out of court.

Sir Olly’s sacking as the permanent under-secretary at the Foreign Office was sparked by disclosures around Lord Mandelson’s appointment as Britain’s ambassador to the US.

In a statement, Sir Olly said: “I am grateful for all the support and good wishes from former colleagues, friends and strangers, which have helped me and my family during this difficult time.

“I want to thank the FDA for their assistance in reaching this settlement and I am looking forward to moving on to the next chapter of my life.”

In April this year, questions were raised over the vetting of Lord Mandelson for the post after The Guardian reported he had failed a background check, but that officials in the Foreign Office took the rare step of overruling this to clear his appointment anyway.

Sir Keir, who was prime minister at the time, then sacked Sir Olly, saying he had not been aware the former Labour grandee was granted high-level clearance against the advice of UK Security Vetting.

Dave Penman, FDA general secretary, said: “This settlement may bring an end to the judicial review proceedings, but this whole unprecedented affair has damaged the bond of trust between civil servants and ministers, which is essential to the effective running of Government.

“The scapegoating of Sir Oliver, to mask the misjudgment of the previous prime minister, marked one of the lowest points in the recent history of civil service-ministerial relations – which is quite the feat.

“We urge the Government to clarify quickly the issues raised by this affair over ministerial involvement in the vetting process.”

At the time of Sir Olly’s sacking, Sir Keir was also facing scrutiny over his decision to appoint Lord Mandelson ambassador because of the peer’s links to the paedophile financier Jeffrey Epstein.

A series of files relating to Epstein were released by the US government throughout late 2025 and into 2026, and detailed some of Lord Mandelson’s correspondence with him.

Lord Mandelson was sacked as ambassador in September 2025 because of disclosures from the files, and earlier this year resigned his Labour party membership and stepped away from the House of Lords.

When the judicial review was initially brought in July, the FDA said that Sir Olly’s sacking was based on a “grievous misunderstanding” of the way vetting works.

It also said Sir Olly was given “irrational” reasons for being fired.

No figure for the settlement between the government and Sir Olly has been disclosed.

A government spokesperson said: “Sir Oliver Robbins KCMG CB has had a distinguished public service career over three decades, including most recently as permanent under-secretary at FCDO, as well as previously as the prime minister’s Europe adviser, second permanent secretary at the Home Office and as deputy national security adviser.

“The government has reached a settlement with Sir Oliver following his dismissal. We will not be commenting further on HR matters.”