'Give it to charity': Labour minister urges Mandelson to return severance payout as he admits Starmer has 'serious questions' to answer

Speaking with Nick Ferrari at Breakfast, the Labour minister admitted there are "serious questions" to answer over Mandelson's appointment after it emerged that Sir Keir Starmer ignored warnings about potential reputational damage posed by the former peer.

Lord Mandelson was sacked as ambassador to the US last year after the extent of his close ties to the late convicted sex offender Jeffrey Epstein emerged in documents released by the US Department of Justice (DOJ).

Following his departure, documents released by the government on Wednesday revealed that Mandelson had initially demanded more than £547,201 as a payout after being ousted.

Defending the government decision to eventually settle, with Mandelson eventually securing a £75,000 payout, Mr Thomas-Symonds said he "can see why the decision was made".

"You can see why, on a numbers basis, you have someone who is claiming £547,000, the documents show us. Threatening to go to a tribunal, have a dispute, it's negotiated down to £75,000."

Read more: Peter Mandelson asked for a £500,000 payout after being sacked as US ambassador, files reveal

Read more: Mandelson emailed Tony Blair’s chief of staff to introduce his 'safe friend' Jeffrey Epstein

“I share your listeners outrage about this, that that money is still being held by Peter Mandelson," the MP told Nick, admitting: "the decent thing to do would be to give it to charity, perhaps. May I gently suggest a charity that supports victims.”

The first set of files related to Peter Mandelson's appointment as the UK's ambassador to the US revealed further details of the former Labour peer's relationship with the infamous sex trafficker.

The files reveal Lord Mandelson requested the government "pay out the remainder of the four-year salary costs of the fixed term appointment”.

“I think there are serious questions about this process," the Paymaster General continued.

"There's two elements to this, just to be clear. There's the due diligence bit where we've got, as I say, the missing document.

"We've then got the vetting process, where I think there are questions there to be answered in terms of, as I say, the point to which it was completed, the order which it took place," he continued.

"We are absolutely looking at that. We've already changed it so you have to complete it before the appointment is taken up.

"But yes, in terms of looking at this process, absolutely right.”

It comes as the documents released on Wednesday revealed that Mandelson emailed former Prime Minister Tony Blair’s chief of staff in an effort to set up a meeting between the Labour PM and Jeffrey Epstein, government files show.

In an email sent by Mandelson in 2002 to Jonathan Powell, Mr Blair’s chief of staff during his time as Prime Minister, he tried to broker a meeting, writing that “when Clinton saw TB [Tony Blair] he said he wanted to introduce his travelling friend, Jeffrey Epstein.

"I mentioned to TB that Jeffrey is in London next week and he said he would like to meet him.”He goes on to ask Mr Powell to let Mandelson know if Tony Blair will be available to meet.