• Peter Mandelson's severance payment under review due to new Epstein-related revelations.
• The former ambassador received a payout potentially totaling £55,000 after his sacking.
• Labour Party leaders demand Mandelson return the taxpayer-funded payoff amidst political fallout.
• Ongoing police investigation into Mandelson's alleged misconduct continues without arrest.
• Keir Starmer faces increasing pressure over his appointment of Mandelson as US ambassador.

The UK Foreign Office is currently reviewing a severance payment given to Lord Peter Mandelson after he was dismissed as the ambassador to the US. This review has gained momentum due to emerging details concerning Mandelson's contacts with convicted sex offender Jeffrey Epstein, which have intensified political scrutiny and outrage over the payment, estimated to be as high as £55,000 (approximately $75,000), according to BBC.

Following the release of additional Epstein-related documents, pressure has mounted for Mandelson to repay the severance. Labour Party figures, including supporters of Prime Minister Keir Starmer, have demanded that Mandelson either return the taxpayer-funded payment or donate it to a charity supporting abuse victims. This call for accountability follows revelations that Mandelson may have leaked sensitive information while he was in government, according to South China Morning Post and India Times.

Reports indicate that the severance amount is based on a standard three-month salary payout—approximately £38,750 to £55,000—corresponding with the high-ranking nature of Mandelson's role in the Foreign Office. The review of this payment was confirmed by a spokesperson from the Foreign Office, who described it as taking place in line with legal advice and standard HR procedures, as noted by BBC and echoed by South China Morning Post.

In addition to the financial scrutiny, Mandelson is also under investigation by the Metropolitan Police regarding allegations of misconduct in public office. Although police have conducted searches of his residences in London and Wiltshire, he has not been arrested. Mandelson maintains his innocence and claims he did not engage in any criminal acts or seek financial gain, according to India Times.

The implications of this scandal weigh heavily on Keir Starmer as well, with internal party tensions rising over his decision to appoint Mandelson, particularly in light of the accusations surrounding his past associations. As public dissatisfaction grows, questions about Starmer's leadership persist, a narrative supported by polls indicating declining approval ratings, according to South China Morning Post and India Times.